Archer in DTI shares inquiry
Lord Jeffery Archer , the best-selling novelist and self-proclaimed candidate for the Conservative Party chairmanship, was last night revealed to be among a number of people under investigation by the Department of Trade and Industry over alleged insider dealing.
DTI-appointed inspectors are looking at alleged share purchases in Anglia Television in January - around the time the company agreed a takeover bid by MAI plc, the owners of Meridien TV.
Mary Archer , the peer's wife, was a non-executive director of Anglia Television at the time.
Lord Archer could not be contacted for comment last night. Earlier he told the Times newspaper: 'It is completely untrue. I did not buy any shares. I'm not going to make a statement. That sort of accusation is libellous.'
The DTI usually refuses to comment on share investigations but last night, in a statement, said: 'We feel it right to confirm that following a report from the Stock Exchange concerning certain transactions close to the announcement on January 18, 1994, of an agreed bid from MAI plc for Anglia Television Group plc, the Secretary of State appointed two inspectors on February 8, 1994, to investigate possible insider dealing contraventions by certain individuals including Lord Archer .
'This matter is being handled in accordance with normal practice in such cases. The inspectors are an accountant and a lawyer independent of the department, and the Secretary of State is now waiting to receive their report.
'When received, the report will be considered in detail before any decisions are made on whether any further action should be taken.'
It is known that following the Anglia share activity, a Stock Exchange inquiry began. The results of this investigation were passed to the DTI which, under the terms of the Companies Act, has responsibility for formally investigating allegations of insider trading and the right to pursue cases if it finds any evidence of wrongdoing.
It is illegal for anyone to use 'inside' information about a company to profit from buying or selling its shares. People are 'insiders' if they have access to information which has not been made available to all investors.
Shares in ITV companies had risen sharply following an announcement by the Heritage Secretary, Peter Brooke, in November 1993 that he was prepared to relax ownership rules which had previously prevented mergers between large broadcasters. Shares in likely takeover targets such as Anglia were favoured by media industry analysts in the City who predicted that the companies would be valued highly by predators. LWT was later taken over by Granada and Central merged with Carlton.
Anglia Television accepted the £292 million takeover bid from MAI on January 18. Anglia shares jumped 180p to 664p, and MAI gained 31p to 315p.
A spokesman for Anglia Television said last night: ' Anglia was aware of the DTI investigation and has co-operated with the inspectors. It was at no time, however, aware of the alleged transaction and it is taking steps to establish the facts.'
Lord Archer , whose best-selling novels have made him a multi-millionaire, has made no secret of his ambition to become party chairman, despite senior Tories' concern about his erratic political career. He has also expressed interest in taking a post in the National Heritage department and is understood to have threatened privately to give up politics if Mr Major does not give him a job and sign a new multi-million pound book deal with an American publisher instead.
Jeffrey Archer was one of the youngest Tory MPs when he was elected Member for Louth in 1969 but he resigned his seat five years later after losing most of his money in a business venture, only to revive his fortunes by writing the best-seller Not a Penny More Not a Penny Less.
Politically rehabilitated by Margaret Thatcher, he was made deputy chairman of the Tory party in 1985, only to resign a year later after allegations in a Sunday tabloid newspaper that he had paid money to a prostitute. He subsequently won substantial damages in a celebrated libel case in the High Court.
One of the most flamboyant characters in the Conservative Party and close to both Lady Thatcher and John Major, he has been an assiduous campaigner for the party and has won widespread admiration for his resilience and ebullience.
Lord Archer 's name has been widely touted as a successor to Sir Norman Fowler for the party chairmanship and he has let it be known that he would like 'a proper job'.