Swedish Real Estate CEO Detained on Insider Trading Allegations

The founder and chief executive of one of Sweden’s biggest real estate companies has been detained in custody amid allegations he was a party to insider trading.

Samhällsbyggnadsbolaget i Norden, a Stockholm-based property company worth more than $2.3 billion, said on Tuesday that its CEO, Ilija Batljan, was being held by police amid concerns he’d violated Sweden’s Market Abuse Regulation. The news sent shares in the company, dubbed SBB locally, plunging as much as 42%.

SBB stands out as a prolific issuer of debt in recent years, with the equivalent of $4.7 billion bonds outstanding, according to data compiled ...