Rakon shrugs off report

Rakon shares rose in the wake of a Weekend Herald report which disclosed that the engineer's products had been included in smart bombs and alleged it had not been up-front with customers about defects.

The shares were similarly unaffected by the Government's plans to ask officials to check again whether its technology exports comply with New Zealand's export controls.

Rakon shares closed up 3c yesterday at $2.50, well ahead of their float price of $1.60 two weeks ago.

Rakon explained that it kept its customers well informed about quality issues and the use of its products had been fully disclosed in its recently published prospectus.

The Weekend Herald said Rakon knowingly provided a key component of smart bombs, yet claimed not to know the end use of its products

Rakon said it did not expect customers to be disturbed by the article, adding its investors were supportive.