About that Harman International hoax…

Well, the SEC has wasted no time in getting to the bottom of it.

Via Reuters:

SEC NAMES INDIVIDUAL DEFENDANT HAZEM KHALID AL-BRAIKAN IN CASE INVOLVING PURCHASES OF HARMAN INTERNATIONAL INDUSTRIES INC SECURITIES

SEC SAYS AL-BRAIKAN ENGAGED IN AGGRESSIVE STRATEGY OF BUYING HARMAN INTERNATIONAL INDUSTRIES INC STOCK AND OPTIONS IN THE 4 DAYS BEFORE FALSE TENDER OFFER

SEC SAYS AL-BRAIKAN’S PURCHASES POSITIONED HIM TO REAP LARGE PROFITS FROM HARMAN INTERNATIONAL INDUSTRIES INC SHARE INCREASE

SEC SAYS AL-BRAIKAN IS CEO OF DEFENDANT AL-RAYA INVESTMENT , AND IS A RESIDENT OF KUWAIT

A quick search of Al-Raya produces very little: a website still under construction and this press release from just over a year ago:

Kuwait – 24 June 2008:

Kuwait’s ambitions to become a leading financial centre in the Middle East have received a major endorsement from global financial giant CitigroupCitigrou and Kuwait-based Al-Raya Investment.

The vote of confidence comes following a personal meeting with HH The Emir of Kuwait Sheikh Sabah Al-Ahmad Al Sabah and Citigroup’s global Chairman Sir Winfried Bischoff and A-lRaya Investment Company Chairman Sheikh Sabah Nasser Sabah Al Ahmad Al Sabah and Vice Chairman and CEO Mr. Hazem Al-Braikan.

Citigroup and AlRaya have established a business partnership in Kuwait, with the US financial powerhouse taking a 10% stake in Al-Raya Investment Company.

and this note:

About Al-Raya Investment Company

Al-Raya Investment Company KSCC is a private company incorporated under Kuwaiti company law as a Kuwaiti closed shareholding company and registered with the Central Bank of Kuwait as an Islamic Investment Company.

The company was established in April 2008 with a paid-up capital of KWD 25 million. Al-Raya aims to be the first and most comprehensive Islamic investment company in Kuwait and the GCC region with a clear focus on international Islamic asset management products and services.

Full SEC release to follow.
Update:
More from Reuters.

US SEC SUES UNITED GULF BANK BSC AND OTHER DEFENDANTS OVER DISSEMINATING FALSE INFORMATION ABOUT HARMAN INTERNATIONAL INDUSTRIES INC

SEC LAWSUIT IN NEW YORK COURT SAYS UNITED GULF BANK BSC, KIPCO KIPCO ASSET MANAGEMENT CO KSCC , AL-RAYA INVESTMENT PROFITED FROM AMASSING POSITIONS IN HARMAN AND TEXTRON INC

DEFENDANTS REALIZED PROFITS OF MORE THAN $5 MILLION

SEC SAYS IN PAPERS FILED IN MANHATTAN FEDERAL COURT SEC SAYS DEFENDANTS ENGAGED IN SCHEME TO PROFIT BY TRADING AROUND THE FRAUDULENT OFFERS TO ACQUIRE HARMAN AND TEXTRON

SEC SEEKS DEFENDANTS TO DISGORGE ILL-GOTTEN GAINS AND PAY PENALTIES

And here’s the Textron bid story as reported by Reuters in April 2009.

Shares of Textron Inc soared 67 percent in premarket trading after a Kuwaiti newspaper reported that a consortium of Middle Eastern companies was closing in on a deal to buy the diversified U.S. manufacturer.

Textron shares rose to $15.20, up from a $9.11 close on the New York Stock Exchange. “A Kuwaiti newspaper is reporting that a consortium of UAE companies, with a Kuwaiti firm, is close to a deal to buy Textron,” wrote Macquarie Capital analyst Robert Stallard in a note to clients.

The newspaper, Al-Watan, he wrote, “said that the consortium is offering $21.00 per share.” A Textron spokeswoman did not immediately return a call seeking comment.

SEC complaint can now be found in the Long Room.

Related links:
Harman denies approach from mystery suitor – FT
The Fake Sheikh is back in town… (2nd update) – FT Alphaville