Stock Exchange eyes Rubicon share raid

By Nick Stride

Friday 5th July 2002

The Stock Exchange yesterday began investigating a complaint sharebroker JB Were breached exchange rules with its overnight purchase of 18% of Rubicon.

JB Were bought just over 50 million shares on Wednesday night from institutional holders for GPG, which already owns 1.99%.

But the broker allegedly neglected to observe an exchange rule that says it should have stood in the market for 20% of those shares, or 10 million.That would have given Rubicon's other shareholders an opportunity to sell shares at the 75c offer price.

According to market sources JB Were and the Stock Exchange were yesterday attempting to hammer out a deal whereby the broker would ask the selling institutions to each take back 20% of the shares sold. JB Were would then stand in the market for 10 million shares.

But JB Were director Paul Harris said he was not aware of any complaint to the exchange.

If one had been made, he said, he imagined it would relate to regulation 617. JB Were's legal advice was that it would not apply. The exchange's new chief executive, Mark Weldon, could not be reached for comment.

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