South Korean authorities arrested Kakao Corp.’s chief investment officer for alleged stock price manipulation in a high-profile takeover battle over K-pop agency SM Entertainment Co., Yonhap News reported.

Chief Investment Officer Bae Jae-hyun was arrested early Thursday after a warrant was issued by the Seoul Southern District Court, according to the news agency. He and two other employees are accused by the financial regulator of buying 240 billion won ($178 million) in shares of SM in an attempt to disrupt a rival tender offer by Hybe Co.. The court didn’t issue an arrest warrant for the other two people, who work at Kakao and Kakao Entertainment Corp.

Both Kakao and Hybe saw ownership of SM as a way to reach a broader audience and to drive Korean entertainment acts into the mainstream, and their bidding war sent SM’s stock price to a record. Kakao won a controlling stake after Hybe, the BTS label, backed down in March.

The lawyer representing Kakao executives, who previously said the purchase of SM shares was a legitimate market transaction, was not immediately available for comment. Representatives for the court were also unavailable for comment.