Watchdog growls over Lion deals

The Australian Securities and Investments Commission has sought information from two investment banks, Deutsche and Caliburn, in insider trading investigations covering two separate transactions involving Lion Nathan. In a further development, BusinessDay has established that ASIC has questioned Lion Nathan staff.

BusinessDay also believes other firms with access to privileged information about the transactions are being questioned. Six accounting, law and public relations firms that provided services to companies during the two deals say they have not been approached by ASIC.

In contrast, public relations consultancy FD Third Person would provide no comment on the issue. Nor would six investment banks named as being involved in the deals: Caliburn, Citigroup, Deutsche, JPMorgan, Macquarie Group and UBS.

BusinessDay has established that both Deutsche and Caliburn have received ASIC "notices to produce" in relation to insider trading investigations that covered Lion Nathan transactions. BusinessDay is making no allegations about firms that may have been contacted by ASIC in the course of what is believed to be a wide-ranging inquiry.

ASIC is examining unusual trading patterns in Lion Nathan shares in two periods before its $3.5 billion takeover by Japanese food and drink company Kirin Holdings last year.

In that transaction, Deutsche and JPMorgan acted as advisers to Kirin, Caliburn acted as adviser to Lion Nathan, and FD Third Person acted as public relations adviser to Kirin.

The investigation, which also involves Australian Federal Police, is into allegations that a Deutsche employee passed information about the deal to a second person who then informed a West Australian crime figure.

The tip was then allegedly passed to young people who used CommSec accounts to profit before the eventually successful takeover offer of $12.22 a share was launched on April 24 last year. Before the announcement, the shares had last traded at $7.96.

Australian Federal Police have confirmed they participated in raids in Sydney and Perth.

BusinessDay put questions to all identifiable Australian professional services firms involved in two separate Lion Nathan transactions last year: the failed merger between Coca-Cola Amatil and Lion Nathan, and the successful takeover by Kirin.

BusinessDay asked three questions, including: "Has your firm been served with a notice to produce by the Australian Securities and Investments Commission within the last year in relation to trading in Lion Nathan shares?" The six investment banks chose to make no comment.

Six of the seven firms that had a part in the deal accountants Deloitte and Ernst & Young, law firms Mallesons Stephen Jaques and Blake Dawson, and PR firms Kreab Gavin Anderson and Cosway Australia said they were unaware of any contact by ASIC in relation to trading in Lion Nathan shares. FD Third Person would not comment

A spokesman for Lion Nathan would not comment. A spokeswoman for Coca-Cola Amatil said it had not been contacted by ASIC about Lion Nathan transactions.