Dimension Data Employee Fined for Insider Trading Amid NTT DealRenee Bonorchis
Kevin Handelsman, part of Dimension Data Holdings Plc’s corporate finance team, has been fined by a South African regulator for insider trading in a period before the company was acquired by Nippon Telegraph & Telephone Corp.
Handelsman traded 13,000 Didata shares from July 8 to 13 in 2010 while in possession of inside information, the Pretoria-based Financial Services Board said in an e-mailed statement today. Handelsman was fined 68,460 rand ($7,610) after the FSB’s directorate of market abuse took into account the fact that he was a first-time offender, showed contrition and cooperated with the investigators, according to the statement.
“I didn’t go out there to make money on this, I wasn’t trying to manipulate things, it was an unfortunate situation,” Handelsman said in a telephone interview today. “My trade didn’t move the share price. I co-operated, I didn’t want to fight it. The legal fees weren’t worth it.”
NTT agreed on July 15, 2010, to buy South Africa’s largest technology services provider in the biggest bid by a Japanese company for an overseas asset so far that year. Two days before, trading in Didata shares in Johannesburg tripled in volume compared with the year’s average, as 7.98 million shares changed hands and the stock rose 4.9 percent.
“It’s possible there will be other investigations into insider trading in Didata’s shares,” Solly Keetse, head of the FSB’s directorate of market abuse, said by phone today. “It depends on what evidence surfaces. The case against Kevin Handelsman is now closed.”