OMX says that Citigroup Global Markets Limited in London has breached Stockholm Stock Exchnage rules that state that a party who acquires 5 percent or more of the shares in a company must disclose the acquisition.
Citigroup acquired more than 5 percent of the shares in Lindex AB without openly disclosing the acquisitions, says the exchange. Accordingly, Stockholm Stock Exchange’s Disciplinary Committee has decided to warn the company.
“Citigroup is a member of Stockholm Stock Exchange,” says the exchange in a statement. “Exchange Members must abide by the Swedish Industry and Commerce Stock Exchange Committee’s disclosure rules, which require disclosure of the acquisition and transfer of shareholdings.”
According to these rules, a member who acquires shares in a listed company and thereafter owns 5 percent or more of the company’s share capital or voting rights must disclose the acquisition not later than 9 a.m. on the trading day that follows the date of acquisition. At the same time, Stockholm Stock Exchange must be informed.
On 16 February 2005, Citigroup acquired more than 5 percent of the shares in Lindex. However, Citigroup did not disclose the acquisition until 8 April 2005, and also failed to inform the Exchange.
The Disciplinary Committee found that Citigroup had disregarded generally acceptable practices in the Swedish securities market and therefore decided to warn the company.