Is the party in question guilty of a violation of U.S. insider trading law if they followed through with their proposed plans/strategies?

A friend who is a human resources consultant has just told you about a lunch meeting she had with the president of a pharmaceuticals company.The company president, who was an acquaintance and former subordinate of your friend (at an unrelated business), had previously told your friend that her consultancy might be retained to negotiate a new employment contract for the companys CEO, in connection with a contemplated transaction.For months there had been speculation in the press that this company was a potential takeover target.In their meeting, which your friend viewed as having business potential, the company president told your friend that the company was definitely involved in serious talkswith potential acquirers or merger candidates, though no specifics were given.You yourself had previously thought that this company might be a takeover target, and are trying to decide whether to purchase the stock and call options in light of what your friend has told you.