Federal prosecutors just released the audio of the wiretapped telephone calls between Raj Rajaratnam and various alleged co-conspirators, that they’re using to fight their insider trading case.
There are three calls.
1. A 2008 conversation between Raj and Rajiv Goel, a former Intel official, discussing trading shares of PeopleSupport.
While Raj explains that the stock price of People Support is down based on some bad press that morning, he’s sure the stock is about to surge: “We know because one of our guys is on the board,” Raj says. “They put $41 million in escrow. It’s a $250 million deal.”
2. An August 2008 recording of Raj talking with Anil Kumar, a former McKinsey executive, about a deal involving AMD.
AK: So yesterday they agreed on… at least, they’ve shaken hands and said they’re going ahead with the deal.
RR: So, can I buy now?
AK: Go ahead and buy.
Later in the conversation, Raj moves the discussion to Spansion and buying up its stock. “Just do it properly, you know,” Raj says.
3. Raj talking to one of his former traders at Galleon, Adam Smith, on May 1 in 2008. They’re talking about a company called Vishay. Raj begins by asking Smith how he is. “I’ve been better,” he responds. “Listen, ah, I talked to Kamal last night.” Kamal, we assume, is Morgan Stanley banker Kamal Ahmed.
RR: Uh huh.
AS: And ah, they bid on a deal for Vishay… It’s a private equity. And they lost, so CSFB got the mandate… Um but they said they’re finally a willing seller, the deal looks phenomenal to him. So the problem is I won’t be able to get any updates but I’m gonna buy… It’s trading at 9; book value is 18. They just reported yesterday so you don’t have any real risk.