Inquiry clears Iceland ex-boss

Malcolm Walker: In the clear

A four-year inquiry into alleged insider dealing in Iceland shares has exonerated the food retailer's former chairman, Malcolm Walker.

Officials at the Serious Fraud Office (SFO) have told Mr Walker's lawyers that no charges will be brought.

The probe began after Mr Walker sold Iceland stock worth £13.5m weeks before the firm issued a profits warning, forcing its share price sharply lower.

Mr Walker, who resigned over the affair, welcomed the SFO decision.

Vindicated

"I never had the slightest doubt that I would be totally vindicated by any inquiry into alleged insider dealing in Iceland shares," he said.

"While I naturally welcome the fact that any suggestion of wrongdoing has now been officially withdrawn, I regret that it has taken almost four years to reach this inevitable conclusion."

Mr Walker had denied any wrongdoing, saying he was unaware of Iceland's deteriorating performance when he sold the shares in late 2000.

Iceland's parent firm, the Big Food Group, last month revealed that it had received a takeover approach from Baugur, the acquisition-hungry Icelandic retailer.

Baugur's approach came amid signs of a fresh downturn in Iceland's fortunes, with sales falling nearly 4% in the three months to September compared with the same period last year.