A candid transcript of a phone call involving one of the most prominent US hedge fund managers and a top London broker has been released by the UK markets watchdog to support its decision to fine the men for market abuse related to trading in shares of pub operator Punch Taverns. The UK's Financial Services Authority on Thursday handed down a £350,000 fine to corporate broker Andrew Osborne as part of a multiyear inquiry into trading in Punch Taverns by Greenlight Capital, the $9bn US hedge fund headed by David Einhorn. Greenlight and the charismatic, poker-playing Mr Einhorn were fined £7.2m by the FSA last month - the second-largest penalty ever handed out by the regulator. The FSA said Greenlight had sold Punch shares in June 2009 after receiving price-sensitive, non-public information about a fundraising by the pub operator during a phone call between Mr Einhorn, Mr Osborne and the UK company's executives. Mr Osborne, a former managing director at Merrill Lynch, was landed with his fine after deciding not to contest charges of market abuse that were brought at the same time. Both Mr Osborne and Mr Einhorn have sharply criticised the FSA charges, denying them in vigorous terms. The FSA said in a statement on Thursday: "During the call, Osborne disclosed inside information that Punch was at an advanced stage of the process towards a significant equity fundraising, probably within the timescale of a week." In an unusual step for the regulator, it released the transcript of the phone call. At one point, Mr Einhorn asked: "So - so how much equity do you think you need to raise to protect the situation?" and then asks Mr Osborne to "pencil . . . out" a specific number of what a hypothetical equity fundraising - which would be dilutive to the value of Greenlight's significant holding in Punch - might be. Mr Osborne responded: "something like 350 sterling," to which Mr Einhorn replied: "Wow, wow. Punch's management went on to tell Mr Einhorn that no formal decision had been taken on the rights issue and if he signed an non-disclosure agreement - which would prevent Greenlight from trading for its duration - they could disclose their thinking more fully. Mr Osborne told Mr Einhorn that most other shareholders were "supportive" of "stuff that's in the NDA." However, Mr Einhorn declined to participate further. "Throughout the transaction in question, I followed proper procedures at all times," he said. Mr Einhorn has not yet commented but said last month that he felt the FSA's actions were "unjust and in contradiction to the law and the facts. "Despite the FSA's conclusion, there had been no obvious statement of inside information disclosed during the conversation," he said. Mr Einhorn also stated that he had refused to sign a non-disclosure agreement and had declined to receive inside information.