By Rob Hosking
Friday 4th July 2003 |
Text too small? |
Finance Minister Michael Cullen's office expressed surprise yesterday that the commission was looking at the sale of shares that took place around the time of the June 6 announcement that the government would buy a 35% stake in the bleeding rail company.
Commission head of enforcement Norman Miller said the Stock Exchange automatically referred such matters to the commission if there was an increase in price or volume of trading of stock or both - around the time of such announcements. That was what had happened in this case.
"It's a routine matter," he said yesterday.
The memorandum of understanding between the commission and the Stock Exchange, finalised earlier this year, requires the exchange to automatically refer some trading activity to the commission. Other referrals it leaves as "discretionary" and this one falls into that category.
The exact degree of change in price or sale volume is not defined in the agreement: it simply states that where there are "unusual movements in share price or trading volume" the exchange may conduct a preliminary screening of the issue and may refer it to the commission.
There is a belief that the exchange is now operating a lower threshold for those "unusual movements."
An earlier investigation into large sales of stock by Sir Michael Fay, David Richwhite and Wisconsin Central was still under way but Mr Miller would not comment any further on that issue.
That investigation was far less routine it was triggered by a complaint from the Shareholders' Association.
The association has expressed frustration that the investigation is taking so long.
The Market Surveillance Panel completed its report into those transactions in February and that report is being used by the commission in its inquiry.
No comments yet
Devon Funds Morning Note - 1 September 2025
September 1st Morning Report
POT Financial Results for the year to 30 June 2025
MOVE FY25 Results for the year ended 30 June 2025
BPG - Completion of Retail Offer
Comvita releases results for the year ended 30 June 2025
August 29th Morning Report
Air New Zealand announces 2025 financial result
August 28th Morning Report
VSL - 2025 date of Annual Meeting of shareholders