Johannesburg - South Africa's market watchdog is investigating around 30 cases of potential insider trading and other illegal market activity, including trades of Dimension Data Holdings [JSE:DDT] before a bid from Japan's NTT.
The Directorate of Market Abuse, a division of South Africa's Financial Services Board, said on Tuesday it is also investigating Harmony Gold Mining Company [JSE:HAR] and three other companies for possibly reporting false or misleading earnings results.
The directorate said in a statement that trading of Dimension Data's stock in July was one of several cases being examined for potential insider activity.
The Johannesburg-listed shares of Dimension Data gained nearly 5% over the three days before Nippon Telegraph and Telephone Corp said on July 15 it would buy the IT firm for $3.2bn.
The regulator is also investigating Harmony Gold's results for the quarter to end-March 2007 and Alliance Mining Corporation [JSE:ALM] and Blue Financial Services [JSE:BFS] results for the year to end-February 2009.
It is investigating African Dawn Capital [JSE:ADW] results for the year to end-February 2008 and 2009.