Anglo American's London-listed shares soared in late trading in the UK on Wednesday.ShinobiarcadeHours later, the company announced a $39 billion offer from rival BHP Group, prompting questions from some lawyers, investors and commentators about possible leaks.
On Wednesday, Anglo American shares rose about 2% between 15: 00:00 GMT and 15: 30 GMT.Shinobiarcade.8%. Anglo American said in a statement at around 23:00 GMT that it had received contact from BHP.
By contrast, shares of Anglo's peers Rio Tinto, Glencore and Antofagasta rose only 0.2-0.5 per cent in the 35 minutes before the close of trading in London. If the acquisition plan succeeds, it will create the world's largest copper miner.
Harvey Knight, head of financial services regulation at law firm Withers LLP, said: "before BHP publicly announced the offer, Anglo American's share price soared, raising questions about the integrity of the UK market, which the FCA may want to investigate."
The UK FCA does not normally comment on individual trading irregularities it investigates and refuses to comment on whether they will be reviewed.
In an emailed statement, FCA said it was "not in a position to comment on individual cases".
A spokesman for Anglo declined to comment when asked whether Anglo American had contacted FCA about any potentially illegal transactions, or whether the regulator had contacted the agency.
Prices have soared. "some people are either very lucky or very knowledgeable," said Richard Bernstein, chief investment officer of activist investor Crystal Amber.
The share prices of mining companies such as Anglo American fluctuate sharply depending on commodity prices or major currencies such as sterling and the dollar.
Regulated companies and individuals in the UK are obliged to detect and report suspicious transactions if there are reasonable grounds to suspect market abuse, such as insider trading or market manipulation.
Peter C. Earl, senior economist at the American Economic Research Institute, told Reuters: "between private chat networks, secure text messaging apps and even disposable mobile phones, there are more ways than ever to share materials and non-public information without being discovered."
"Financial markets are in an arms race for the dissemination of information. Some are aboveboard, some are in private. "
