Watchdog acts on Whimp

Bernard Whimp. Photo / Supplied

The Securities Commission has moved to make businessman Bernard Whimp correct unsolicited offers for shares in a number of listed companies which have triggered outrage in the investment community.

Company directors, shareholder representatives and regulators have urged investors to get advice when considering offers from limited partnerships associated with Whimp. The offers are above the market price but they are payable over 10 years and dividends are foregone, making them below market.

The Securities Commission yesterday made orders against limited partnerships associated with Whimp, requiring them to send corrective statements to the shareholders they had written to, pointing out the offers were misleading.

The corrective statement directs shareholders to the fine print of the offer and says the net present value of the offer is less than the nominal market price.

"This means that the offer is not only worth less than may appear at first sight but is worth less than the amount of money you would get if you sold the shares now through a sharebroker at their current trading price," the commission said.

The companies affected are TrustPower, Vector, Guinness Peat Group, Contact Energy, DNZ Property and Fletcher Building.

This is the third time Whimp has targeted listed New Zealand companies with low-ball offers and the Government is tightening the law covering them.

- NZPA