Escom Stock Trading Under Investigation

July 10, 1996 (CUCUG) - One more potential piece of bad news for Germany's Escom, the soon-to-be-former owner of Amiga Technologies, hit the wires recently. Reuters is now reporting that the company is under investigation for possible insider trading by Germany's Securities Trading Supervisory Office. In the few days prior to Escom's announcement of their intentions to file for protection from creditors last Wednesday, July 3, the German oversight agency (similar to the Securities and Exchange Commision in the US) noted a "suspicious" surge of sell-off trading of Escom shares.

Anke Reeh-Schild, a GTTSO spokesperson told Reuters, "The turnover seen was very suspicious in comparison with previous levels," and went on to note that the increase was eight to nine times higher than usual.

The investigation could take months to determine any wrong doing, though, as data on all transactions and bank records must be analyzed. No Escom officials are named in the investigation.

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