Companies

Briefs ....

Qwest Communications | PLUS Markets | NETELLER | De La Rue

Joseph Nacchio, former Qwest Communications chief executive, has been sentenced to six years in prison for insider trading. Earlier this year Nacchio was convicted on charges connected to share sales he made between January and September 2001 when prosecutors say he knew, but did not disclose, that Qwest was unlikely to continue to meet its earnings targets. Nacchio has also been ordered to forfeit $52m and pay a $19m fine.

US attorney Troy Eid commented: “In an age of cynicism, justice can still prevail and even inspire. This is one of those moments”.

PLUS Markets has been granted recognised investment exchange status, allowing it to go into direct competition with the London Stock Exchange (LSE).

However, Lombard in the Financial Times (20 July) said that while more competition and choice in the exchange sector is welcome, investment exchange status in itself adds little to any threat PLUS poses to the LSE. The LSE, said Lombard, is above all aiming to host more big international companies and to become location of choice for the trading of highly liquid large stocks – and these remain well beyond PLUS’ reach.

NETELLER, the online payments processor, has agreed to forfeit $136m in return for US authorities deferring charges brought in connection with the country’s crackdown on online gaming. As part of this arrangement, NETELLER admitted to participating in unlawful actions related to internet gaming financial transactions.

Providing the company’s fulfils the conditions of the agreement, the charges will be dismissed after two years. NETELLER added that it hopes to restore its shares to trading on AIM as soon as possible.

De La Rue, the commercial banknote printer, is under investigation over corruption allegations. De La Rue said it believed the allegations against it to have been made by a “former employee against whom the company has obtained a judgement for the recovery of monies stolen from it”. De La Rue denies the allegations.

August 2007