'Gang's £265,000 from bid leak bets'

INSIDE knowledge of a planned takeover of tobacco group Gallaher by rival cigarette giant Philip Morris was used by four men accused of operating an insider dealing ring to place huge bets on share price movements, a court has heard.

Four gamblers Ian Beale, Alexander Coleman, Richard Judson and Daniel Masters and former Credit Suisse First Boston compliance officer Asif Butt have pleaded not guilty to insider trader charges.

The prosecution argue Butt leaked information he was privy to at work to the others who then placed bets on the likely share-price movements.

The court heard that Philip Morris was proposing a takeover of Gallaher, and a series of 10 bets worth £ 497,928 were placed on the outcome of the proposed secret bid. CSFB was advising Philip Morris and an unnamed partner in a hostile bid, which did not go ahead.

The men are alleged to have made £265,000 from their activities, although not all their bets won.

The four are alleged to have placed hundreds of thousands of pounds worth of bets with IG Index, Cantor and Financial Spreads between 1999 and 2001, Southwark Crown Court has heard.

The case continues.