Guinness admits link with Boesky

Press, 22 December 1986, Page 38

Guinness admits link with Boesky

NZPA-Reuter London The British brewing company, Guinness, says that in May one of its subsidiaries joined a limited partnership managed by Ivan Boesky, who has admitted to insider trading in the United States, but added it had done nothing wrong. A company statement said one of its subsidiaries became a limited partner in a venture managed by Ivan F. Boesky and Company, investing. £69.8 million (SNZI94 million). The statement did not name the subsidiary. Guinness is being investigated by the British Department of Trade and Industry in relation to its £2.6 billion (SNZ7.2 billion) take-over earlier this year of Distillers, Britain’s largest producer of Scotch whisky. Government sources said the investigators were looking for any connection with Boesky, who last month agreed to pay SUSIOOM (SNZI9SM) in penalties for insider trading — the illegal use of privileged information for personal profit.

After Guinness’s statement, the • company’s shares fell on the London stock exchange to 281 p each from Thursday’s 299 p close, dealers said. A Guinness spokesman said the company had not publicly disclosed details of its involvement in the partnership earlier because it wanted to withdraw from it without financial loss:

The company’s statement said details of the partnership were reported to the appropriate British Government authorities in the summer, and the company had received clearance for the overseas investment in compliance with British law.