Alaska Air Group Chief Executive Officer Bill Ayer this week denied that he provided insider information to a large hedge fund investor in the airline holding company about the pending takeover of Puget Sound Energy.
Bloomberg News, citing two unnamed sources, alleged that Ayer and hedge fund Donald Smith & Co. are being investigated by the U.S. Securities and Exchange Commission. The hedge fund doubled its investment in Puget Sound Energy before its takeover was approved by the state in 2008.
Ayer was a member of Puget Sound Energy's board and Donald Smith was a large investor in Alaska Air Group. Alaska Air Group, based in Seattle, is the owner of Alaska Airlines and Horizon Air.
After Smith doubled its investment and the takeover approval announcement was made, the utility's stock rose 21 percent.
"I never provided any material non-public information about Puget Energy to Donald Smith & Co., or anyone else," Ayer, 56, said Thursday in an e-mail in response to questions from Bloomberg News.
Richard Greenberg, senior vice president at Donald Smith, declined to comment on behalf of the firm. SEC spokesman John Nester declined to comment as well, the news service said.
By JOHN GILLIE
Tacoma News Tribune