Securities Commission moves against misleading Whimp offers

Securities Commission moves against Whimp’s misleading offers

By Paul McBeth

March 18 (BusinessDesk) – The Securities Commission is moving against Christchurch businessman Bernard Whimp latest low-ball offers, saying they are misleading.

The regulator ordered Whimp’s limited partnerships to send corrective statements on offers made earlier this week that appeared to be above market value, but were on a 10-year deferred payment plan at lower than the nominal price. It has blocked those bids, and banned Whimp from making similar offers in the future.

The orders relate to Carrington Securities LP’s bid to buy shares in TrustPower Ltd., NZ Investment Securities LP’s offer to Vector Ltd., Chase Securities LP’s bid for Guinness Peat Group shares, Carlyle Securities LP’s bid for Contact Energy Ltd. stock, Energy Securities LP’s offer to DNZ Property Group, and Fairfield Securities LP’s offer to Fletcher Building Ltd. shareholders. Cargill Securities LP, Fairfield Securities LP, Pearson Securities LP, and Powershares LP are also subject to the prohibition.

Earlier this month, Parliament’s Commerce Committee recommended legislation that would let the regulator clamp down on low-ball offers, requiring warnings to be published by predatory bids, and letting the new super-regulator to block unsolicited bids in certain circumstances.

Whimp launched a slew of low-ball offers over the Christmas and New Year holidays, all expiring three days before the Securities Commission reopened its offices from the summer break.

He had some snapping up shares of DNZ Property Fund Ltd., buying 2.2 million shares at 60 cents each in August, and they recently traded at $1.22.

His use of limited partnerships annoyed the government last year, which has been looking at ways to block banned directors from circumventing disqualification.

Whimp was banned from being a company director for four years in October 2006 after the deputy Companies Registrar found he was linked to the mismanagement of at least two failed companies. In 2003, his contributory mortgage business, General Mortgages, was placed under statutory management by the Securities Commission.

(BusinessDesk)

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