Morrisons forced to suspend senior executive arrested over insider trading
The bad news continued to mount on embattled grocer Morrisons after it was forced to suspend a senior executive who has been arrested on suspicion of insider trading.
Britain’s fourth largest supermarket, which started its first online food delivery this month in partnership with Ocado, suffered the embarrassment of group treasurer Paul Coyle facing investigation by the Financial Conduct Authority.
He stands accused of trading in Ocado shares days before it was announced the two firms would form a £216m collaboration. Shares in Ocado (up 11.5p to 516.5p) have soared to an all-time high on the back of the announcement.
Bad news: Morrisons has suffered the embarrassment of group treasurer Paul Coyle facing investigation by the Financial Conduct Authority
The FCA said it had executed a search warrant in Harrogate last month.
‘One male, aged 49, has been arrested in connection with an investigation into insider dealing and market abuse,’ it said.
Coyle has not been charged.
Insider dealing is punishable by a fine or up to seven years in prison. Morrisons has been having a tough time. It was late to launch both a convenience format and online – both growth drivers for its rivals.
The firm was the worst performer over the festive period warning full-year profit will come in at the low end of forecasts.
It is no stranger to controversy in the City.
Founder and life president Sir Ken Morrison was fined £210,000 three years ago for failing to disclose he had reduced his shareholding in the supermarket chain.
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