CBOE in routine review of MFS options .
CHICAGO 1996-08-27
The Chicago Board Options Exchange ( CBOE ) said on Tuesday it was doing a routine investigation into trading in options on MFS Communications Co Inc shares .
On Monday , the company said it had agreed to be acquired by WorldCom Inc in a deal valued at $ 14 billion .
MFS shares surged on the news while WorldCom fell on fears of dilution .
The New York Times said on Tuesday some of the options trading in MFS last Friday may suggest insider trading .
MFS options also trade on the American Stock Exchange and the Pacific Stock Exchange .
A spokesman for the American Stock Exchange would neither confirm or deny whether the exchange was looking into trading .
" If there is unusual activity , certainly we look at it , but that 's not to say we 're doing anything official , " he said .
Pacific Stock Exchange officials were not available .
One trader said trading in MFS options had increased steadily from about mid-August , and doubted whether any of last Friday 's activity was insider trading .
- Derivatives desk , 312 408-8750 / E-mail : derivatives@reuters.com