. Energy News .

Areva-UraMin deal followed suspicious trading: report
by Staff Writers
Montreal (AFP) Feb 11, 2012

French nuclear power group Areva's purchase of Canadian uranium producer UraMin in 2007 for a high price was preceded by suspicious stock trades indicative of insider trading, a report said Saturday.

The controversial deal valued UraMin at more than $2.5 billion (1.89 billion euros) and was struck during peak demand for enriched uranium as nuclear energy was making a comeback amid concern over global warming and high oil prices.

Research conducted by La Presse de Montreal newspaper, however, said there was an unusually high volume of trades in UraMin shares in days leading up to the announcement of the Areva takeover.

Volume reportedly quadrupled, allowing well-informed investors to make a gain of 11-24 percent over four days, it said.

Areva is currently struggling to recover from a downturn in expectations for the nuclear power industry in the wake of the disaster at Japan's Fukushima Daiichi atomic plant last year, amid a management shake-up and big job losses.

The UraMin deal is at the center of a dispute involving Areva's former chief Anne Lauvergeon whose severance bonus was held back last year and as several inquiries scrutinize the circumstances surrounding the Canadian acquisition.

The possibility of insider trading has already been raised in an investigation commissioned by Areva, which had a 5.5 percent stake in UraMin prior to the takeover.

According to La Presse, on June 12, 2007 some 16.7 million UraMin shares changed hands, mostly in Toronto but also on the Alternative Investment Market (AIM) in London.

The timing was bad for Areva as the price for uranium had hit an all-time high of around $140 per pound. By the end of 2007, however, the price had fallen to $88 and is now around $52 per pound of material.

Areva announced a cash offer for $7.75 per UraMin share on June 15, 2007 and completed the purchase of the Canadian company six weeks later.

Related Links
Nuclear Power News - Nuclear Science, Nuclear Technology
Powering The World in the 21st Century at Energy-Daily.com

Get Our Free Newsletters Via Email
Buy Advertising Editorial Enquiries


. Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

Thousands rally against nuclear power in Japan
Tokyo (AFP) Feb 11, 2012
Thousands demonstrated in Tokyo on Saturday against nuclear power generation, 11 months after a massive earthquake and tsunami sparked reactor meltdowns at the Fukushima nuclear power plant. Kenzaburo Oe, the 1994 Nobel prize winner for literature, told a central rally at Yoyogi Park, "Radioactive waste from nuclear power plants will be borne by generations to come." "This must not be co ... read more

Study: Mandating ethanol wrong solution

Sustainable land use strategies to support bioenergy

Fuel from market waste

Enerkem and GreenField Ethanol Announce Quebec's First Waste-to-Biofuels Production Facility

Industry welcomes renewed commitment to Solar Flagships program

AORA Solar Launches "Always-On" Solar Power Station in Spain

Solar Inverter Market Hits Speed Bump in 2011

Solarcells work better in two wavelengths

New EU wind power capacity near level

Germany forced to tap into electricity reserves

China to face electricity shortages?

Developing a Potential Low Cost Alternative to Platinum for Splitting Water

Gulf of Mexico spill: Weatherford says exonerated by court

Iraq begins pumping oil to new Gulf terminal

New technology platform for molecule-based electronics

Russian officer hangs himself on nuclear submarine

Russian nuclear sub was armed during fire: report

US Navy names warship after wounded lawmaker

Japan 'should watch' China's naval reach: report

Scientists say Obama Mars cuts to hit research

Venezuela Mars mission after 2030

Obama budget slashes Mars exploration

New Views Show Old NASA Mars Landers

Memory Foam Mattress Review

Newsletters :: SpaceDaily Express :: SpaceWar Express :: TerraDaily Express :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News


The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement