A “low ball” from across the Tasman

20 March 2013

A “low ball” from across the Tasman

An Australian company is targeting Vector shareholders, making unsolicited or “low ball” offers to purchase shares at considerably less than the market value.

Washington Securities Pty Ltd is offering Vector shareholders $2.00 per share, which is nearly 30% below today’s share price of $2.82 per share.

Vector Chairman Michael Stiassny is warning shareholders of the approach from the Australian company and urges them to seek independent advice from their financial advisor.

He also recommends shareholders check the latest share price on the NZX website at www.nzx.com/companies/VCT

Mr Stiassny said hundreds of Vector shareholders have been caught out in “low ball” share offers over the past 18 months, many of them “mum and dad” investors. Those investors have potentially lost hundreds of thousands of dollars in value collectively in the deals.

Under the new Securities Markets (Unsolicited Offers) Regulations 2012, unsolicited share offers must be made within a concise disclosure document that includes prescribed information. However, Mr Stiassny said while this offer wasn’t illegal, it was unethical.

“We believe our shareholders should be aware of the dangers that exist and the consequences of accepting offers significantly below the market price,” he said.

Under the new regulations, shareholders have the right to cancel any acceptance of the offer up to 10 working days after the date of the acceptance.

ENDS

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