Bankers play down talk of a conspiracy

LONDON’S bankers hoped a recent resurgence in merger deals would generate some much-needed good news for their battered industry but instead found Britain’s press seeking out an “insider dealing ring” among them.

Unusual trading in shares of several UK companies that last week said they recently received takeover approaches, has led the industry regulator to look into whether the trading was on the back of preferential information, sources said.

While bankers said the trading was suspicious, particularly the way volume in food retailer Somerfield Plc jumped to over ten times the usual level before its announcement of a takeover offer, they played down talk of a conspiracy. Irish company Musgraves have dismissed speculation they are talking to Somerfield.