Former Tallgrass Board Member Settles Insider Trading Charges Linked to $3.03 Billion Pipeline Deal
(Reuters) — A former Tallgrass Energy board member and his friends will pay $2.2 million to settle insider trading charges related to a Blackstone-led $3.03 billion buyout offer for the oil pipeline operator in 2019, the U.S. SEC said on Tuesday.
The U.S. Securities and Exchange Commission (SEC) announced the insider trading charges and the settlement in a statement.
The SEC alleged that Roy Cook, a former board member of Tallgrass Energy, and four of his friends traded on nonpublic information before the Blackstone-led group's buyout offer was announced in August 2019. Tallgrass shares jumped 36% after the deal was made public.
Cook and his friends agreed to pay a civil penalty and disgorge their "illicit trading profits" without admitting or denying the allegations, the SEC said.
Terms of the Blackstone deal, which valued Tallgrass at $6.3 billion, were struck ahead of a collapse in energy prices in 2020 when global fuel demand plummeted due to COVID-19 pandemic-related business shutdowns. The deal closed at that valuation making it a rare case of a pre-market crash deal going ahead without a price cut.
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Texas Oil Company Challenges $250 Million Insurance Collateral Demand for Pipeline, Offshore Operations
Comments