Paul Singer’s Elliott Management has denied that it engaged in insider trading and market manipulation.
The New York-based hedge fund firm told Bloomberg in an e-mailed statement Friday that its investment in French toll-road company Autoroutes Paris-Rhin-Rhone SA “did not at any time make use of any material non-public information, was for a legitimate business purpose that was part of a long-standing trading strategy, and did not artificially inflate the price of APRR shares.” French markets regulator Autorite des Marches Financiers has recommended a $55 million fine for Elliott at a hearing in Paris on Friday.
Autorite des Marches Financiers alleged that Elliott made trades in 2010 based on confidential information it received regarding Eiffarie and Macquarie Group Ltd.’s infrastructure unit plan to buy the hedge fund’s APRR shares.
Elliott can appeal the decision.
Founded by Paul Singer in 1977, Elliott manages about $21 billion in assets.