NEW YORK — The New York Stock Exchange said Monday that it is conducting a routine analysis of trading in the stock of American Broadcasting Cos. and other media companies because the price and volume of those stocks advanced so dramatically last week.
ABC announced last Monday that it would merge with Capital Cities Communications in a $3.5-billion deal.
"When that analysis is completed, we determine whether an investigation is warranted," said Richard Torrenzano, vice president of the exchange.
Such procedures are used to look for indications that investors might have profited unfairly--and illegally--from advance knowledge about company developments.
In accordance with Securities and Exchange Commission policy, spokesman Harold Green declined to say whether the SEC was conducting an investigation into the trading of any media stocks.
Cable News Network reported that the SEC and the Pacific Stock Exchange in San Francisco have begun investigations into possible insider trading involving the Capital Cities-ABC merger.