August 26, 2006

Agreement Reported to SEC

Pardus Capital Management is playing it safe and avoiding accusations of “insider trading” by making transparent its agreement with fitness club operator Bally Total Fitness Holding Corporation. The hedge fund reported in a filing to the U.S. Securities and Exchange Commission (SEC) that it has signed a confidentiality agreement with Bally.

According to the agreement, the fitness club operator will allow Pardus access to some non-public information for evaluation, negotiation and transaction purposes. The hedge fund, which owns 14.8 percent of the fitness club operations, has in turn promised that it will not trade in Bally securities till three business days after a deadline that can be set to October 16 or an earlier date.

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August 26, 2006 in Regulation | Permalink




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