Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Insider Trading Proceedings Filed: Tranz Rail Case

Securities Commission Files Insider Trading Proceedings In Tranz Rail Case

The Securities Commission filed insider trading proceedings relating to share trading in Tranz Rail Holdings Limited in the High Court in Wellington today. Tranz Rail is now called Toll NZ Limited.

The defendants named in the proceedings are:

Midavia Rail Investments BVBA (previously known as Pacific Rail Limited NV), Berkshire Fund III A Limited Partnership, Michael Beard (former Managing Director of Tranz Rail), Mark Bloomer (former Chief Financial Officer of Tranz Rail), Carl Ferenbach (former Director of Tranz Rail), David Richwhite (former Director of Tranz Rail).

This is the first time that the Commission has used its powers to take court action for insider trading.

The Commission’s inquiry focused on sales of shares in the first half of 2002, before the share price of the company began to deteriorate from about the middle of 2002. At the beginning of 2002 the share price was $4.00. By 16 April 2003 it had fallen to its lowest level ever ($0.30).

The inquiry has involved obtaining documents both in New Zealand and overseas. It has involved a large number of interviews and the receipt of formal oral evidence from many witnesses. … more … The basis for the proceedings is that the parties who sold their Tranz Rail shares had information about the company which was not publicly available and which would have affected materially, or would have been likely to affect materially, the price of the shares if it had been publicly available.

An additional action for tipping is raised against Carl Ferenbach (representing Berkshire Fund III A Limited Partnership) and David Richwhite (representing Midavia/Pacific Rail, an investment vehicle controlled by Fay Richwhite interests).

The proceedings seek compensation for the losses avoided by the traders. The proceedings also seek to have pecuniary penalties imposed.

The inside information at issue relates to:

the forecast financial performance of Tranz Rail, the forecast capital expenditure by Tranz Rail, a bid by Rail America for Tranz Rail (in the event not proceeded with), asset and investment write downs in Tranz Rail, and the financial obligations and credit worthiness of Tranz Rail.

The proceedings are brought under section 18A of the Securities Markets Act 1988. This enables the Commission to exercise a public issuer’s right of action against an insider (in accordance with section 18B) if it considers that it is in the public interest to do so.

The Commission has decided that it is in the public interest to do so in the present case.

The Commission has actively investigated the matter since February 2003, when the Market Surveillance Panel released its report on Tranz Rail.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Our Fresh Water: Monitoring Report Confirms Serious Challenges For Rivers

• nitrogen levels are getting worse at 55 percent and getting better at 28 percent of monitored river sites across New Zealand • phosphorus levels are getting better at 42 percent and getting worse at 25 percent of monitored river sites across New Zealand More>>

ALSO:

Errors Found: Electricity Authority Dumps Transmission Pricing Modelling

The Electricity Authority is ditching the cost-benefit analysis at the heart of its controversial attempt to find a new way to divide up costs for the national grid after finding an expanding range of serious computational errors in the work by Australian consultancy Oakley Greenwood. More>>

ALSO:

New Record: Migrant Arrivals At 129,500 A Year

Annual net migration has been steadily increasing since 2012. "This was mainly due to the rising number of migrant arrivals to New Zealand," population statistics senior manager Peter Dolan said. "Fewer migrant departures also contributed to the increase in net migration." More>>

ALSO:

Launched: NASA's Super Pressure Balloon Takes Flight From NZ

NASA successfully launched its football-stadium-sized, heavy-lift super pressure balloon (SPB) from Wanaka, New Zealand, at10:50 a.m. Tuesday, April 25 (6:50 p.m. April 24 in U.S. Eastern Time), on a mission designed to run 100 or more days floating at 110,000 feet (33.5 km) about the globe in the southern hemisphere's mid-latitude band. More>>

ALSO:

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news