Kazakhtelecom Insider Trading Probe Triggered by Buyout Attempt

A handful of investors in Kazakhstan’s state telecom thought they’d found a loophole that would let them cash out shares at a premium to the market price. Instead, the company has told them that they are under investigation for insider trading.

When Kazakhtelecom agreed in December to purchase cell phone operator Kcell from Sweden’s Telia AB, at least two minority shareholders requested a mandatory buyout. By saying they didn’t agree with the deal and citing company rules developed more than a decade ago, they stood to sell their shares for more than twice their current market value.

Rather than get ...