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Unusual share price trades were found to have happened on the eve of 19% of all takeover announcements for UK-listed companies in 2016, according to the Financial Conduct Authority (FCA).
It says the activity does not necessarily show the level of insider trading, which is when someone buys or sells on the back of information that has yet to become public knowledge.
The FCA says other factors could trigger unusual share price trades including comment from analysts or the media correctly assessing companies which are likely takeover targets.
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