Galleon Witness Testifies of "Super Confidential" Deal Tips

A government witness at the insider-trading trial of Galleon Group founder Raj Rajaratnam told the jury Monday how he leaked details of “super confidential” negotiations between two technology companies to the hedge-fund chief, who was shocked at the terms of the possible deal.

The potential acquisition of ATI Technologies Inc., a Canadian graphics company, by chip maker Advanced Micro Devices Inc. was so secret that the project was at first code-named “Supernova,” and then “Go Big,” said Anil Kumar, a former McKinsey & Co. consultant who advised AMD on the deal. In discussions, AMD was referred to as “Los Angeles” and ATI was called “San Antonio,” he said.

But for months before the deal was announced in July 2006, Mr. Kumar testified, he had been discussing AMD’s plans with Mr. Rajaratnam. Mr. Kumar has testified that Mr. Rajaratnam had been paying him $500,000 a year for inside information, which was reinvested in Galleon through an account in India under his housekeeper’s name.

Read the rest of this post on the original site »


Must-Reads from other Websites

Panos Mourdoukoutas

Why Apple Should Buy China’s Xiaomi

Paul Graham

What I Didn’t Say

Benjamin Bratton

We Need to Talk About TED

Mat Honan

I, Glasshole: My Year With Google Glass

Chris Ware

All Together Now

Corey S. Powell and Laurie Gwen Shapiro

The Sculpture on the Moon

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Websites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other websites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Read more »