Soros faces insider dealing charge in France

Billionaire financier George Soros will face a French court today on insider dealing charges relating to a failed takeover bid for Société Générale 14 years ago. Mr Soros is one of four men accused of earning some $11m from speculating in shares of the then newly privatised French bank ahead of the public announcement of a takeover bid.

Alongside Mr Soros will be banker Jean-Pierre Peyraud; Jean-Charles Naouri, a former French government ministerial adviser and Lebanese businessman Samir Traboulsi.

The corporate raider who spearheaded the bid for Soc Gen in 1988, Georges Peberau, was granted an amnesty in 1995 and seven others were cleared of insider dealing two years ago.

All four men are reported to deny the charges against them, arguing that they were not privy to any insider information relating to the bid for Soc Gen.

Mr Soros sprang to international prominence as the man who made $1bn from speculating that Britain would be forced to withdraw the pound from the exchange rate mechanism in 1992. He used much of the cash to fund a network of foundations to help poor countries.

French investigations into the failed bid for Soc Gen began in 1990 following a report into the bid by stock market regulators.

Investigators are understood to have sought information from authorities in Britain, Switzerland, the Netherlands and Luxembourg to track allegedly suspicious financial movements. They acknowledge that a number of questions remain unanswered despite the lengthy investigation. The trial is expected to last until November 20, though no date has been given for the court to hand down its verdict.