Is this manipulation of pledged shares?

Say we have publicly-listed company X where Owner A has a 50% ownership. Owner A plans to grow Company Y by pledging half of his stake in Company X as collateral for a Loan. 

Would the lenders of Owner A prevent him from buying stock of Company X to protect the value of his collateral? Or is it fair game? And for regulators, will they have a problem with Owner A buying the stock of Company X from the market?

1 Comments
 

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