take over expiry?, page-5

BG Group Executive Investigated Over Share Trading

Monday December 15th, 2008 / 8h40

(Adds BG comments) By Ross Kelly Of DOW JONES NEWSWIRES SYDNEY -(Dow Jones)-

BG Group Plc (BG.LN) said Monday it has suspended the head of its Asian, Middle Eastern and African divisions as Australian authorities investigate his share dealings. Australia's corporate regulator said Monday that it is investigating share trading by Stuart Fysh, who is also BG's executive vice president, prior to the U.K gas giant's announcement in February 2008 that it would take a stake in Queensland Gas Company Ltd. (QGC.AU)

The Australian Securities and Investments Commission or ASIC said it has obtained a court order preventing Fysh from withdrawing funds from a stock broking account.
A spokesman for BG said Fysh has been suspended from his role at the company.

"BG Group is aware of the ASIC proceedings regarding Stuart Fysh, a member of the BG Group executive committee," the spokesman said

"He is currently on suspension from his role in the company. As these are active legal proceedings, we cannot comment further."

BG Group now owns 97.8% of QGC, having moved to a compulsory acquisition of the group after a full takeover offer, launched in October, was successful.

In a separate deal, QGC announced earlier in February that BG would spend A$870 million to take a 9.9% stake in QGC and buy 20% of its gas fields and exploration leases.
QGC shares were worth A$3.42 when they were placed in a trading halt on Feb.1 before the deal was announced in London that night. By Feb. 8, QGC shares had closed at A$4.60.

ASIC said the Supreme Court of New South Wales ordered that Fysh be restrained from withdrawing funds from the Australian account. The orders were originally obtained by ASIC on Dec.2 and have been extended until May 18, ASIC said.

In April, QGC confirmed its former chief financial officer and company secretary, Mukesh Panchal, had his position at the company terminated in late February after QGC heard that he was the subject of an investigation by ASIC for alleged insider trading.

-By Ross Kelly, Dow Jones Newswires; 61-2-8235-2957; [email protected]