Warner Music Group chairman and chief executive Edgar Bronfman, Jr. is now the subject of an insider trading probe, according to recent report in French financial newspaper Les Echos.
Bronfman was allegedly grilled on Thursday by Paris investigators about suspect trading activity in early 2002. At that point, Bronfman roused suspicions by dumping a significant quantity of Vivendi Universal shares just ahead of an unfavorable development. After the divestiture, Vivendi unveiled a stock buyback program that threatened to push valuations downward. Bronfman was a board director at Vivendi Universal at the time of the alleged infraction.
Story by news analyst Alexandra Osorio.