Club hits back at share 'insider dealing' rumours

Sunderland AFC has today issued a statement categorically denying that there is any truth in a rumour about insider dealing in the club's shares, which were recently withdrawn from the stockmarket.

Saturday's Daily Mail carried an article suggesting that the Financial Services Authority is investigating "suspcious" share trading which saw large batches of shares sold only two days before the club announced that their shares would be withdrawn from the market, triggering a massive drop-off in price.

The article alledges that the deals being investigated involve batches of 56,000, 41,000, 28,000, 24,000 which were traded on July 6th, and a batch of 25,000 which was sold on July 5th. On July 7th the club announced the imminent withdrawal of the shares, and the price dropped by half - from 61p to 30p per share.

The tabloid's article suggests that the FSA is currently in the process of finding out who sold the shares, and what their links to the club are, before deciding on whether or not to take the matter any further.

However the club has issued a statement refuting any wrongdoing, with Chief Executive Peter Walker saying "We have not been informed of any inquiry taking place by the FSA or any concern surrounding our delisting. Certainly none of our directors sold shares during that time.

"The biggest of these transactions, made by a private investor unknown to the club, was a sale of 56,000 shares (28,000+28,000) which was ultimately matched to a purchase of 55,000 shares," said Mr Walker. "This transaction was concluded before the delisting.

"Another 41,000 shares were sold by a private investor unknown to the club to another private investor, again before the delisting took place.

"Twenty-five thousand shares appears to have been an internal movement across an institution's accounts.

"The 24,000 shares referred to in the article as a sale were actually purchased, rather than sold."