DNZ investors sell into low ball offer

Monday 23rd August 2010 1 Comment

Bernard Whimp, the partner in Carrington Securities who is banned from being a director, has managed to snare 2.2 million shares of DNZ Property Fund through a low-ball to investors.

Carrington offered 60 cents apiece for shares in DNZ, which last traded at 90 cents on the Unlisted market and changed hands on the NZX today at $1.02. With 0.9% of the number of shares on issue, Whimp is the seventh-biggest shareholder in the property investor.

Whimp, who was banned as a company director for four years in 2006, skirted the ban by setting up a limited partnership, Carrington, and using that as a vehicle for his offer. DNZ said it is disappointed that he managed to convince some shareholders to part with their stock and is referring the matter to the Securities Commission and the NZX.

“These kinds of offers are designed to take advantage of unsophisticated and vulnerable investors. It is of considerable concern that there is nothing that can be done to stop this type of unethical and predatory activity,” chairman Tim Storey said.

Businesswire.co.nz

Comments from our readers

On 25 August 2010 at 8:24 pm W.R.Milne said:

As long as minor investors are taken for granted by their boards and left in a vacum of information on their companies future prospects,they will continue to be easy meat for vultures like Whimp. The only time we heard from the board they were covering their butts and more bad news was due or they wanted more of our limited hard earned money.