Hedge Fund Unit Probed by French Regulator

Elliott Management Corp., the $21.5bn hedge fund run by Paul Singer, said a French regulator is investigating possible insider trading by its U.K. unit in Autoroutes Paris-Rhin-Rhone SA in 2010.

Elliott received a 'letter of grievance' on December 28th from Autorite des Marches Financiers that said the hedge fund may have purchased APRR shares between May 28, 2010, and June 11, 2010, based on material, nonpublic information, the New York based firm said Friday in a filing sent to investors, a copy of which was obtained by Bloomberg News.

The French regulator said Elliott may have inflated the stock price before selling and made a profit of about $3.6m.

'The statements made by the AMF in its letter are without merit and are not supported by the evidence', Elliott said in the filing. 'Elliott’s trading in APRR did not at any time make use of any material nonpublic information, was for a legitimate business purpose, and did not artificially inflate the price of APRR shares'.

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Elliott’s Unit Probed by French Regulator Over APRR Trade

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