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Vector stops Whimp transfers, urges shareholder rethink

Thursday 10th February 2011 1 Comment

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The company associated with businessman Bernard Whimp, which made a low-ball offer to its shareholders, has not filled in share transfer forms correctly so 170 shareholders can rethink their decision to sell below market, Vector says.

Vector was one of a number of listed companies targeted by unsolicited offers from companies associated with Whimp during the Christmas and New Year period. The offers were substantially below the market price at the time but the letters did not contain the comparison. The offers have been condemned as opportunistic but they are legal.

Vector chairman Michael Stiassny has written to 170 affected shareholders telling them they have an opportunity to review their decision to sell shares to Energy Securities due to incorrect or incomplete information submitted on the share transfer forms.

The share transfer forms submitted by Whimp to Computershare do not provide required information, including, in some cases, the CSN number, or correct authorisation.

Whimp has claimed, under power of attorney, that he has signed the share transfer on shareholders' behalf. Without the required information, Vector and Computershare have not been able to confirm that the shares should be transferred.

"I am writing to you directly as I believe it is essential you understand that Whimp is seeking to buy your shares at a 34% discount as at the close of trading on December 29, 2010, with payment in approximately 21 days following registration of a share transfer," Stiassny said his letter.

While it was not the role of the company to advise shareholders, Vector aimed always to represent the best interests of its shareholders, he said.

"I recommend you consider your options and seek legal or financial advice," he said.

James Smalley at Hamilton, Hindin, Greene said it was good to see that Vector might be able to save shareholders from themselves and there should be a law change to require companies to compare offers to the market price.

Telecom said it has received 116 requests for off-market share transfers in relation to the recent offer from Carlyle Securities LP.

Around a third of the 116 forms requesting transfers have all the required information for the transfers to be registered and have been processed.

In cases where the forms are incomplete, Telecom will be writing to those shareholders to advise them that if transfers are to be registered the shareholders must complete the form. Only forms that have been correctly completed will be registered.

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Comments from our readers

On 11 February 2011 at 8:45 am Andrew P said:
Seems a shame that those who filled out the forms correctly don't also get the opportunity to "rethink".
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