Seymour Pierce merger shaky as Gerova delists

PROPOSED Seymour Pierce buyer Gerova Financial Group has been delisted from the New York Stock Exchange due to concerns over its financial disclosure.

Bermuda-based Gerova’s shares were suspended by the NYSE on Tuesday amid allegations it failed to report its financial dealings accurately to investors and its shares have been subject to insider trading.

Its share price was in freefall after a torrent of bad news hit the firm.

It disclosed last week that a management overhaul caused the resignation of its chairman Gary Hirst and four board members, while new chairman Dennis Pelino walked away from the job before starting it.

Seymour Pierce chairman Keith Harris has also deferred his move to Gerova and the merger looks shaky.

The NYSE also flagged concerns last week about “unusual market activity” in Gerova shares, a sign it believes there is insider trading, traders said.