Goldman And The 3Com "Insider Trading" Connection
Following up on our earlier disclosure about potential insider trading in 3Com stock, we have uncovered something interesting. Did Goldman (in)advertently tip off clients that 3Com was potentially
in strategic negotiations? 3Com was previously supposed to present at
Goldman's Data Center Techtonics Conference today at the Sheraton Hotel
in New York (Agenda below). In a limited distribution
note, Goldman yesterday advised selected clients that 3Com had withdrawn at the
last minute from the Conference. As those in the industry are well
aware, any last minute switches of this kind are indicative of imminent
good or bad news dissemination, and more often than not are associated with some strategic announcement.
While the person buying the calls (if indeed this was not a calendar
spread) may have been provoked to do so as a hedge against anything
crazy out of the firm, it is amusing that once again a very selectively disseminated
piece of information to only Goldman clients may have been the driving reason for making markets "efficient."