Authorities must fast track rules to stop 'low-ball' share offers - Stiassny
Vector chairman Michael Stiassny is appalled that Bernard Whimp is engaging in further trickery with another "low-ball" offer to Vector shareholders which would result in a significant financial loss to them if they accepted.
Mr Stiassny was referring to another unsolicited offer to Vector shareholders by NZ Investment Securities LP, a company associated with Mr Whimp (who was banned as a company director for four years in October 2006).
"Mr Whimp is offering Vector shareholders $3.20 per share, which is above current market price, but the amount is only payable in instalments over a ten year period and all future dividends are foregone from the time the offer is accepted," Mr Stiassny said.
"There is no certainty that the instalments would be paid and shareholders should be aware they would become unsecured creditors in the event Mr Whimp fails to meet his payment obligations.
"This is blatant trickery and is targeting investors who may not read the 10 year payment period in the fine print or understand that they would be handing their dividends over to NZ Investment Securities LP," he said.
The Vector Board does not endorse the unsolicited offer and is advising shareholders to be wary.
Mr Stiassny urged the regulatory authorities to intervene and fast track a proposed change in legislation that would offer shareholders better protection from "low-ball" unsolicited offers.
"Changes to legislation are needed urgently- this is the second "low-ball" offer Vector shareholders have received from Mr Whimp in the last four months. It is imperative that robust legislative changes are made quickly to protect shareholders," he said.