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Securities Commission warning on St Laurence offer

Thursday 6th May 2010

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The Securities Commission is warning St Laurence Finance Limited debenture-holders to be "wary" of an unsolicited offer from a bottom-feeder Australian investor, Stock and Share Trading Company Pty Limited.

The SSTC offer is pitched at 8 cents in the dollar and follows St Laurence's receivership, announced last week.

"Such an offer does not mean that 8 cents in the dollar is the true value of the securities," said commission chair Jane Diplock. "Offers sometimes try to exploit doubts about the value of debentures, so it's important that investors get advice from a reputable financial adviser before coming to a decision.

"It is very difficult to accurately assess the value of a finance company's debetures when it is in moratorium or receivership," she said. "As these debentures are not trading on any organised market there is no market price for investors to compare the offer against."

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