Shareholder mistakes foil Whimp offers
More than half of the 300 Vector shareholders who sold shares into a low-ball offer over the Christmas period may be able to back out due to incorrect paper work.
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More than half of the 300 Vector shareholders who sold shares into a low-ball offer over the Christmas period may be able to back out due to incorrect paper work.
In a statement this morning Vector said 170 shareholders can review their decision to sell because the share transfers could not be confirmed because the forms were not filled out correctly.
More than 300 Vector shareholders sold into Bernard Whimp’s post Christmas offer at a 34% discount – trades that chairman Michael Stiassny described as absolutely galling.
The transactions made Mr Whimp a paper profit of about $340,000 based on the market value of the shares last week.
This morning Mr Stiassny said he has advised affected shareholders that without the required information, including a correct shareholder number and authorisation, the company and Computershare were unable to confirm the shares should be transferred. Those shareholders now had a "second chance" to decide whether or not to sell their shares.
Mr Stiassny cautioned shareholders against accepting any unsolicited share offer without first seeking professional advice.
Mr Whimp uses limited partnerships to make his offers, having been banned from being a company director for four years in October 2006.
In 2003, his contributory mortgage business, General Mortgages, was placed under statutory management by the Securities Commission.
The commission is considering actions to ensure that investors have confidence in the New Zealand capital markets.
Duncan Bridgeman
Thu, 10 Feb 2011
Thu, 10 Feb 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
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Shareholder mistakes foil Whimp offers
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