Panel Says Mitterrand Friend Benefited From Stock Deal: Criminal Probe of Alleged Insider Tr
PARIS, Jan. 31ÛÓIn the latest development in an insider trading scandal that has become a major embarrassment for the Socialist government, French stock market investigators reported today that a close triend ot President Francois Mitterrand was among those who' profited from the transactions, and they recommended a criminal investigation.</br></br>The Market Operations Commission, after a six-week investigation set off by queries from the U.S. Securities and Exchange Commission, concluded that insider trading crimes were committed in France in November during the $1.26 billion takeover of the U.S. company Triangle Industries Inc. by FranceÛªs government-owned aluminum firm, Pe-chiney SA.</br></br>French officials and company executives, may have illegally passed the word that negotiations about the takeover were under way. The takeover caused the price of Triangle stock to rise from about $10 a share to its sale price of $56. PechineyÛªs president, Jean Gandois, said he believes the leak came from France.</br></br>But the commission report, which largely was in line with widespread press articles, put an official seal on charges that MitterrandÛªs longtime friend, Roger Patrice Pelat, was among six French-based individuals or companies that profited by buying Triangle stock just before the takeover and selling just after it was announced Nov. 21.</br></br>According to the investigators, Pelat and his family made more than $360,000 on trading 10,000 shares between Nov. 16 and Nov. 28. Pelat, 70, has not denied making the deal, but said he acted in good faith on information supplied by a friend out-Sco INSIDER, FG, Col. 1