Fletcher Building has joined other companies and officials warning about offers for shares from entities associated with businessman Bernard Whimp.
Whimp's latest approach is to offer a price above market payable over 10 years, with dividends foregone.
Limited partnership Fairfield Securities LP, which is linked to Whimp, has offered $11.50for Fletcher Building shares, which had a market price on the NZX of $8.74 aBOUT 2pm today, up 6c on the day.
Fletcher Building said shareholders should take no action on the Fairfield offer.
While the offer was above the current market price, Fairfield would be able to sell the shares immediately while shareholders would not be paid in full for 10 years, Fletcher Building said.
Shareholders would also not receive dividends on the shares they sold during the next 10 years if they accepted the offer.
Previously, Whimp caused outrage in the investment community when he sent letters to shareholders in several companies offering to buy shares at below market prices.
The letters did not make a comparison to the market price, and the Government is moving to make this a requirement.
Michael Stiassny, chairman of Vector, whose shareholders have received an offer from NZ Investment Securities LP, which is associated with Mr Whimp, yesterday said he was appalled that Mr Whimp was engaging in actions that would result in a significant financial loss to shareholders if they accepted the offer.
Earlier this week DNZ Property disclosed that its shareholders were being targeted and said the offer may be ineffective as parts of the documents had an incorrect company name.
Securities Commission chairwoman Jane Diplock said investors should seek advice.
While it was not illegal to make an unsolicited offer to buy investments, it was against the law to mislead or deceive investors into accepting an offer, and the commission was urgently reviewing the current offers in light of that requirement.
