Philips departing chief executive Mr Cor Boonstra is to be investigated by public prosecutors in Amsterdam on alleged insider trading in shares of Dutch TV firm Endemol.
Mr Boonstra, who leaves Philips Electronics at the end of April, said in a brief statement the investigation would look into a purchase of shares in Endemol in March 2000 - the month Spanish telecoms firm Telefonica launched an offer for the firm.
"Mr Boonstra has offered his full co-operation to the [bourse watchdog] STE and to the public prosecutors and is confident about the proceedings," the statement said.
A Philips spokesman said: "This has nothing to do with Philips. It's a private transaction by Mr Boonstra."
Mr Boonstra has no direct link with Endemol. But his partner Ms Silvia Toth was a member of Endemol's supervisory board.
The public prosecutors office in Amsterdam confirmed it had received a report from the STE at the end of last week.
A spokesman said prosecutors would now decide whether or not to launch a criminal investigation. Such investigations typically last several months.