FSS has applied for arrest warrants for three Kakao/Kakao Ent executives including Chief Investment Officer, Bae Jae-hyun and heads of the investment strategy departments for Kakao and Kakao Entertainment, for alleged violations of the Capital Markets Act.FSS alleges that the suspects spent more than 240B to manipulate SM Ent’s stock price above Hybe’s tender offer price in February in order to sabotage Hybe’s takeover bid. FSS also alleges the suspects failed to report their large acquisitions of SM Ent shares in violation of the 5% reporting rule (which requires any entity owning more than 5% to file disclosures when buying or selling shares).
Kakao says that they engaged in a legitimate market purchase to gain control of SM Ent in a battle with Hybe and there was no market manipulation and no damage to Hybe or SM minority shareholders. https://news.kbs.co.kr/news/pc/view/view.do?ncd=7792616
Note: Arrest warrants are issued when a judge is convinced that the suspect is either a danger to the community or a flight risk.
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Anyone please explain it to me like I'm 5. I hate stocks and number but I'm noisy af.