Shares down nearly 7% premarket (Il Sole 24 Ore Radiocor) - New York, 13 Aug - Shares in B.

Riley Financial fell sharply in premarket trading after losing more than half their value yesterday after the US investment bank said it had received subpoenas from regulators and it would suspend its dividend.

In a call on earnings yesterday the bank's chairman and co-chief executive Bryant Riley said the company had come under scrutiny because of connections to hedge-fund manager Brian Kahn.

Kahn stepped down as CEO of Franchise Group, a company B.

Riley bought a stake in as part of a buyout, after news reports linked him to a failed investment firm.

"The company and I received subpoenas in July from the SEC..

These primarily relate to the company's dealings with Brian Kahn. We are responding to the subpoenas and are fully cooperating with the SEC," Riley said.

At 1248 GMT B. Riley Financial shares were down 6.8% after losing 51.9% yesterday.

AAA-Sje

(RADIOCOR) 13-08-24 14:55:07 (0364) 5 NNNN