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Securities Commission orders Whimp to correct 'misleading low ball' offers, threatens fines

Securities Commission orders Whimp to correct 'misleading low ball' offers, threatens fines

See the Securities Commission's statement below:

The Securities Commission has today made orders against limited partnerships associated with Mr Bernard Whimp. The orders follow misleading offers made by the limited partnerships to buy shares in a number of listed companies.

They require the limited partnerships, through their General Partner Mr Bernard Whimp, to send corrective statements to the shareholders to whom the offers were made.

The statements set out that the Securities Commission has ordered the partnerships to write to the shareholders because the original offer was misleading; that the offer appeared at first sight to be made at above the market value of the shares, but under the fine print the full payment would not be made for 10 years; and that the net present value of the offer is therefore much less than the nominal offer price.

The orders have been made in respect of the following offers, all dated on or around 15 - 18 March 2011: Carrington Securities LP

- offer to buy shares in TrustPower Limited NZ Investment Securities LP

- offer to buy shares in Vector Limited Chase Securities LP

- offer to buy shares in Guinness Peat Group plc Carlyle Securities LP

- offer to buy shares in Contact Energy Limited Energy Securities LP

- offer to buy shares in DNZ Property Group Limited Fairfield Securities LP

- offer to buy shares in Fletcher Building Limited

The Commission has also prohibited those limited partnerships, and other limited partnerships also associated with Mr Whimp, from making unsolicited offers to buy securities in a way that is the same or substantially the same as the March 2011 offers. The other limited partnerships subject to the prohibition are as follows: Cargill Securities LP Fairfield Securities LP Pearson Securities LP Powershares LP.

Copies of the orders and of the corrective statement can be found on www.seccom.govt.nz. The Commission is also considering taking further action arising out of the misleading offers.

 Note to editors:

It is not illegal to offer to buy securities at less than their market value. However, under section 13 of the Securities Markets Act 1988, a person must not engage in conduct, in relation to any dealings in securities, that is misleading or deceptive or likely to mislead or deceive.

The Commission has formed the view that the offers made on 15 March 2011 are misleading or deceptive or likely to mislead or deceive. It has therefore made prohibition and corrective orders under section 42A of the Securities Markets Act 1988. The text of the required statements is set out at as part of the corrective order on www.seccom.govt.nz.

The statements must be mailed by fastpost by 5pm on Tuesday 22 March 2011 and confirm that to the Commission in writing by mid-day on Wednesday 23 March. A person who contravenes the Commission's orders commits an offence and is subject to a fine of up to $30,000 for each offence.

Here are copies of the offer for Fletcher Building shares ... 

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2 Comments

Sorry but whats the difference between Whimp and Agri's low ball takeover of PGGWrightson?

Both are buying assets well below value.

goldenfox : Agria are making a take-over bid for PGG Wrightsons , and are offering monies above the previous market price of the company , to all investors . They are transparent about their actions . Agria wish to control and to grow PGG Wrightson as a business .

Whimp is attempting to part selected  private investors out of their share holdings , in particular companies . He uses several techniques  , some of which offer investors down to only 30 % of the current market price of their shares . He seeks to make a  quick profit from the ignorance and gullibility of his victims . And he achieves some measure of success at this . ... . A benevolent person may say that he is providing an expensive education to those victims , in shaking  them out of their ignorance , after the con ... ... I am not so charmed by this shyster's behaviour .