Whimp hits back at Vector over share bid

Vector chairman Michael Stiassny. Photo / Paul Estcourt

Low-ball share buyer Bernard Whimp has slammed Vector chairman Michael Stiassny for telling investors they have a second chance to get out of offers made by his company Energy Securities.

Stiassny yesterday wrote to 170 Vector shareholders telling them they have a chance to review their decision to sell shares to Whimp's company because of incorrect or incomplete information on the share transfer forms.

Energy Securities sent letters to Vector shareholders between Christmas and New Year offering $1.56 a share - 34 per cent less than the $2.36 they were trading at on the market on December 29.

More than 300 investors accepted the offer.

Stiassny told investors without the correct shareholder number and authorisation Vector and share registry company Computershare had not been able to confirm that the shares should be transferred.

"You may wish to take this opportunity to seek professional advice on whether to proceed with this unsolicited share offer - bearing in mind that it does not match current market value," he told investors.

But Whimp said Stiassny was wrong and investors were legally bound by the documents regardless of whether they had the right numbers.

"It's completely wrong - they don't get a second chance. Once they have accepted the offer they have sold their shares. Stiassny is completely misleading people. He is setting himself and 170 people up to be sued."

Stiassny said he had taken legal advice and based on that Vector could not register the share transfers without the information.

"I've also had contact with Mr Whimp via a number of other channels and we are taking further legal advice."

Stiassny said he believed Whimp was lashing out because he wanted to make the most of the current situation.

"I think it's because, I hope, it's the last time he can take advantage of unsuspecting people and therefore he wishes to take advantage of that and make as much money as he can."

If share transfers from 170 people are stopped it would potentially knock out more than half of the $298,000 Whimp could earn from the Vector offer.

Unlike in Australia people who send offers to investors in New Zealand don't have to let them know what the current market price is.

Asked why he didn't include the current share price in his offers to shareholders Whimp said: "It's just irrelevant to me. That is their business [if they choose to accept it.] I just offer whatever I feel like paying."

Vector is not the only one taking this strategy. Telecom, Fletcher Building and Nuplex are also analysing share transfer applications after Whimp offers.

Telecom yesterday said it had received 116 shareholder requests to transfer a total of 120,000 shares but only a third of the applications had all the information needed.

"Telecom will be writing to those shareholders to advise them that if transfers are to be registered the shareholders must complete the form. Only [correctly completed] forms ... will be registered."

Nuplex said just under half of the 11 Nuplex shareholders relating to 50,000 shares did not have the right information to be processed.