Property For Industry Ltd is urging shareholders to ignore a low-ball offer from a company stalking its register.
The property investor said before Christmas that it had received a request for its share register from Zero Commission NZ.
Zero has now made an unsolicited offer to PFI shareholders holding 2000 shares or less for $1.12 a share.
The board does not support or endorse the offer, noting that PFI's shares have traded between $1.20 and $1.23 in the last 30 days.
Last year the government put regulations in place to help rein in unsolicited share offers and protect shareholders.
It regarded the offers as a predatory tactic that damaged confidence in capital markets.
Low-ball offers are unsolicited approaches to shareholders offering to buy their shares or other securities. Offer letters put pressure on people to sell their shares quickly, often with little information and using unconventional business practices.
The new regulations require greater disclosure and introduce stronger rights and remedies for shareholders.
The person making the offer has to state the market price or a fair estimate of the value of the shares and specifying a minimum offer period and a cancellation period.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Spark boss ditches *another* Sky decoder
- Carry on: Xiamen for Auckland, Cathay for Christchurch, Virgin for HK and more
- Hooton: Racism lies behind Little’s kaupapa Maori attack
- Hunter's Corner: Sealegs: an underperforming marine technology innovator
- Smith’s swimmable rivers scheme burning holes in farmers’ wallets
Most listened to
- Business Week in Review with Grant Walker and Andrew Patterson
- Rob Hosking on the politics of protest vs the politics of government
- Rodney Hide: Advance means retreat for glacier scientists
- Stewart Germann and Gehan Gunasekara go head-to-head on the franchising debate
- Racism lies behind Little’s kaupapa Maori attack, says Matthew Hooton