The Federal Bureau of Investigation and the Securities and Exchange Commission have reportedly sought information from food and beverage company Dean Foods Co (NYSE:DF) and consumer products maker The Clorox Co (NYSE:CLX) in connection with an insider-trading investigation of billionaire investor Carl Icahn.
Citing people familiar with the developments, The Wall Street Journal reports that the Dallas-based dairy and soy company Dean Foods Co (NYSE:DF) recently received a subpoena from criminal authorities ordering the company to produce information.
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According to The Wall Street Journal report, the government investigation began after Mr. Icahn accumulated a 9.1% stake in consumer products maker The Clorox Co (NYSE:CLX) in February 2011. Later on July 15, 2011, he made a $10.2 billion offer for the consumer products maker which caused its stock to jump. The investigators are looking into whether Icahn tipped well-known gambler Billy Walters about his actions involving Clorox.
Earlier this month, billionaire investor Carl Icahn expressed his surprise at his alleged involvement in the insider trading investigation. He highlighted his ‘unblemished record’ of over 50 years and indicated that he has never given any insider information to anyone. Moreover, he said he’s never met or spoken with golfer Phil Mickelson, although he does know Billy Walters.
Dean Foods, Clorox not charged yet
Citing The Wall Street Journal, Reuters reports the authorities are looking into whether Mickelson and Walters may have traded illegally on private information provided by Carl Icahn about his investments in public corporations. As regards Dean Foods Co (NYSE:DF), the investigation is focused on trading pertained to the 2012 spinoff of its WhiteWave Foods Co (NYSE:WWAV) division.
However, none of the men have been charged, and Icahn, Walters and Mickelson have all denied any wrongdoing.
As reported earlier, investigators with the SEC and the FBI haven’t found any evidence that Mickelson traded shares of The Clorox Co, though there are still investigating Phil Mickelson and William Walters in connection with trades of Dean Foods Co (NYSE:DF) in 2012.
During the past 10 months, agents with the FBI have approached Mickelson to discuss his trading. Separately the authorities have also questioned Walters’ trading in The Clorox Co (NYSE:CLX), which came around the same time in 2011 when Carl Icahn began his unsolicited takeover bid for the company.