Insider info on acquisition & desire to buy stock from acquiring company?

If a person knows that his company may be acquired by a public traded company but nothing more and buys stock from this company is he or she violating any laws?

If so then can this person buy the stock as soon as it hits the wires without violating any laws?

.

thanks for the concurance.

jeff's answer is spot on.

aside from that, the buyer company stock price may decrease due to the acquisition. historically, buyer company share prices tend to decrease where the company that is being bough increases(I don't have a quote for this)

The answer to the first part is yes.

And the second part is yes also. Once the acquiring company obtains 5 percent of the target they have to file a 13D with the SEC. At that point its public knowledge.

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