Ko­dak in­ves­ti­gated over an­nounce­ment of drug-making loan

The Daily Telegraph - Business - - Business - By LaToya Hard­ing

THE US Se­cu­ri­ties and Ex­change Com­mis­sion is in­ves­ti­gat­ing the cir­cum­stances around East­man Ko­dak’s an­nounce­ment of a $765m (£585m) gov­ern­ment loan to make drugs at its Amer­i­can fac­to­ries, the Wall Street Jour­nal has re­ported.

Shares at the for­mer film com­pany sky­rock­eted af­ter the sur­prise an­nounce­ment on Tues­day last week.

Jim Con­ti­nenza, Ko­dak’s chair­man and chief ex­ec­u­tive, was handed 1.75m stock op­tions the day be­fore news of the loan broke.

That Mon­day, Ko­dak’s shares climbed by 25pc.

Sen­a­tor El­iz­a­beth War­ren has asked US reg­u­la­tors to ex­am­ine pos­si­ble in­sider trad­ing and dis­clo­sure vi­o­la­tions.

On the an­nounce­ment, pres­i­dent Don­ald Trump said the fed­eral loan would help re­duce the United States’ reliance on other coun­tries for the ma­jor­ity of in­gre­di­ents used to make generic drugs.

Ko­dak shares were down 12pc at $13 in late trade yes­ter­day, valu­ing the com­pany at $579m.

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