[IWAR] FINANCE explosions at pharmaceutical firm for speculation

From: 7Pillars Partners (partnersat_private)
Date: Thu Apr 09 1998 - 20:32:54 PDT

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    Stock speculators behind pharmaceutical firm blasts,
    police say
    Copyright  1998 Nando.net
    Copyright  1998 Agence France-Presse 
    MONTREAL (April 9, 1998 2:25 p.m. EDT http://www.nando.net) - Small bombs that
    exploded at Biochem-Pharma buildings in
    November were placed by stock market speculators who hoped to push down the
    price of shares they had committed to buy,
    police said Thursday.
    Investigators said the perpetrators committed tens of thousands of dollars to
    Biochem-Pharma shares in a "put-option" strategy
    several days before the bombs went off. The investors planned to exercise their
    options to buy after the blasts and then sell
    when the share price recovered.
    But the plan hit a snag when the Montreal Stock Exchange suspended trading in
    Biochem-Pharma shares for several hours after
    the Nov. 25 blasts, and Biochem-Pharma shares closed only slightly lower at the
    end of the session.
    "We have the players, what we lack is the person who backed them financially,"
    said Detective Michel Bonneville of the
    Montreal police force.
    Bonneville said police anticipated making arrests in the case in a week to
    seven days.
    On Nov. 25, bombs exploded at a Biochem-Pharma office in downtown Montreal and
    at another in the suburb where the
    company's headquarters are located. There were no injuries and only minor
    damage to the buildings.
    At the time, it was thought the explosions may have been the work of an
    international rival or an animal rights group protesting
    the use of laboratory testing animals.
    Last month, a parcel bomb was found outside the headquarters, forcing police to
    evacuate the building housing
    Biochem-Pharma's administrative offices and research laboratories.
    Trading in Biochem-Pharma shares was suspended again after the news,
    Biochem-Pharma developed 3TC, one of the earlier anti-AIDS drug 3TC, sold
    distribution rights to British pharmaceutical
    giant Glaxo Wellcome. The deal gave Biochem-Pharma net profits for the first
    time since the company was created in the early

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