Insider tag dogs Fletcher

By KARYN SCHERER

Fletcher Challenge is once again embroiled in an insider-trading investigation.

The Securities Commission confirmed yesterday that the Stock Exchange had asked it to investigate the trading of Fletcher Forests shares before this week's restructuring announcement.

The Herald revealed on Tuesday that Fletcher was poised to announce a rights issue for its problem forestry division.

The commission is checking claims that some brokers may have acted on inside information about the plans, which were announced by the company later that day.

Commission investigator Norman Miller said the probe would probably focus on trading in the three to four weeks before Fletcher Challenge announced its plans on October 10.

In June, the Securities Commission agreed that former Fletcher chairman Kerry Hoggard had been an inside trader when he bought $635,000 worth of shares in four of his company's letter stocks in December.

In July, retirement-village operator Eldercare alleged Fletcher Energy had withheld price-sensitive information during its takeover of Southern Petroleum five years ago.

While it later dropped its claims, it is understood other Southern Petroleum shareholders are planning their own legal action.