Spanish court to investigate insider trading allegations against ex-Abengoa CEO

A FORMER CEO of stricken energy giant Abengoa joined a US investment firm who made millions from his old company’s collapse, it is alleged.

Manuel Sanchez Ortega left Sevilla-based Abengoa in May to join BlackRock, the world’s largest investment firm.

In August BlackRock, which has around €3.73 trillion of assets, took short positions against Abengoa on the market worth 1% of its working capital.

The deal made BlackRock millions and helped accelerate Abengoa’s demise with liabilities of around €25 billion in Spain’s biggest ever bankruptcy case.

Spain’s High Court is now investigating allegations of insider trading against Sanchez.

It will also look at severance payouts received by Sanchez and former Chairman Felipe Benjumea following complaints from Abengoa shareholders.


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