October 14, 1999 15:50
Alert: (In U.S. figures unless indicated) OTTAWA Oct 14 (Reuters) - The high-profile chief executive of Canadian software maker Corel Corp. , Michael Cowpland, was charged on Thursday with three counts of violating securities law. The Ontario Securities Commission also said it has charged Cowpland's personal holding company M.C.J.C. Holdings Inc. Corel stock was halted on both the Nasdaq and Toronto Stock Exchange before the announcement. The insider trading investigation relates to 1997 trading activity. Cowpland's sale of 2.4 million Corel shares, for C$20.5 million, one month before the firm reported a surprising $32-million third-quarter loss, sent the stock into a 40 percent decline. Cowpland sold his shares when they were trading between C$8.20 and C$8.80. Cowpland, who has said he sold the shares to pay off personal loans, maintained the investigation was routine and that he would be vindicated. "I'm sure the market will react negatively because it doesn't like to see things like this -- especially from CEOs," said Jean W. Orr, analyst at Nutmeg Securities Inc. in Connecticut. "From a company standpoint, I doubt that it's particularly negative or significant."
($1=$1.48 Canadian) |
