David Einhorn Tells His Side Of The Story On The FSA’s Insider Trading Fine
by Staff Writer on January 26, 2012
By Julia La Roche
Now, here’s Einhorn’s side of the story.
At the time, Greenlight was one of the largest shareholders in the pub and bar operator. Einhorn said his firm was approached by Punch’s investment bank about signing a non disclosure agreement (NDA), which means you’re given confidential information and by signing one you agree not to disclose that information.
Einhorn explained there are several reasons why you would want to sign an NDA, especially if you think you can assist the management or influence the company in a positive way.
Greenlight declined to sign an NDA.
“We had no interest in becoming an insider,” he said recalling that he told the company he would be “happy to talk to management, but not interested in receiving information to trade stock.”
The banker pressed the NDA issue, but Einhorn said he continued to decline.
During an “open, unrestricted” phone call with Punch’s CEO, CFO and investment banker Einhorn said he learned that the “best way to describe Punch was it was a company with a serious heart condition — if it quit smoking and lost weight and started exercising it would be OK….There’s a good chance that without a transplant it would die.”
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