New Zealand authorities appear powerless to stop Australian sharemarket predator David Tweed from targeting gullible Kiwi investors.
Tweed - the sole director of Colonial Capital Corporation - has offered to buy shares in AMP for $6, half yesterday's $12.02 closing price.
Kathryn Rogers, Securities Commission director primary markets,said the offer did not seem to be illegal.
"If we had reason to suspect there was something misleading in it we would follow up on that but because there doesn't appear to be [the case] we've got no grounds to take any action," she said.
"It seems to be a very clear statement that they're offering half price for the shares, that they're not making any representations as to the fairness of the offer, they're encouraging people to get independent advice.
"There's nothing illegal about offering a lower price for something."
David Russell, Consumers' Institute chief executive, said the offer was "skating within the law" but could confuse some elderly people.
"[A] tiny, tiny percentage of people are going to be taken in by it but it could be very significant for those people who are," Russell said.
"Somebody could argue perhaps that they had been misled under the Fair Trading Act but I think that would be relatively difficult to establish given that the information is there if you read it."
AMP has urged its shareholders not to accept unsolicited offers below market value.
Jill Craig, director of investor relations, said listed companies in Australia could not refuse a request for the share register - providing the names and addresses of investors.
Craig said: "That's the door if you like that he comes in through. There's obviously moral issues that we're very concerned about."
In New Zealand and Australia, about 0.15 per cent had accepted.
Tweed did not comment when contacted by the Business Herald.
