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19 May 2011

Statement on Whimp Decision

Media Release
19 May 2011

From Sean Hughes, CEO, Financial Markets Authority

We are very pleased the Court has today confirmed our view that the 'deferred payment' offers made by Mr Bernard Whimp and associated entities were misleading. We accept the Court's decision.

This decision means that investors should no longer be deceived by these kinds of offers. This will not only help to restore investor confidence in our financial markets, but also send a clear message about inappropriate conduct which otherwise damages the market's reputation. Companies and shareholders should be happy with this outcome.

Notes about the decision

The orders relate to the various offers, all dated on or around 15 - 18 March 2011 made by the following entities associated with Mr Whimp:

  • Carrington Securities LP - offer to buy shares in TrustPower Limited
  • NZ Investment Securities LP - offer to buy shares in Vector Limited
  • Chase Securities LP - offer to buy shares in Guinness Peat Group plc
  • Carlyle Securities LP - offer to buy shares in Contact Energy Limited
  • Energy Securities LP - offer to buy shares in DNZ Property Fund Limited
  • Fairfield Securities LP - offer to buy shares in Fletcher Building Limited

In addition to making orders preventing Mr Whimp from making any further offers of this kind, the Court has ordered that, with the exception of a small number, any agreements made to sell shares to Mr Whimp are cancelled and any shares that have already been transferred are to be returned.

Excluded from the orders are a small number of shareholders who responded to a communication from Mr Whimp confirming they wished to continue with the sale of their shares. With respect to those shareholders, FMA is to be given the opportunity to verify the genuineness of their confirmation.

The judgment does not extend to sales of shares to Mr Whimp as a result of the 'low ball' offers he made in December 2010

File Attachments

FMA statement on Whimp decision

Related

Case: Bernard Whimp and associated limited partnerships - Order