The City watchdog is reported to be looking at shares traded in Amec in the run-up to a takeover approach in November

The Financial Services authority is investigating trading in Amec鈥檚 shares in the run up to an announcement that it had received a takeover approach.

It is reported that the City watchdog has launched an investigation into trades leading up to Monday 13 November when Amec revealed it had been approached by private equity groups Texas Pacific and First Reserve.

The focus of the investigation is trading by hedge funds, according to the Daily Telegraph.

Texas Pacific and First Reserve approached Amec about a 450p per share offer, valuing it at around 拢1.5bn. Last month the pair said they would not be making a joint offer for Amec because they had been refused access to its books.

The FSA have refused to comment on the story.