Trading of Tranz Rail shares around the Government's announcement of a bail-out deal has sparked a Securities Commission inquiry - but sharebrokers are more interested in a long-running probe smouldering in the background.
Securities Commission head of enforcement Norman Miller said the commission was looking at trades aroundthe June 6 announcement of a heads of agreement for the Government to buy a 35 per cent stake.
"It appears to be a routine referral from the exchange," he said.
Brokers have been asked for details of trades.
Those contacted by the Business Herald said trading records showed no obvious cause for concern.
Miller would not comment on the topic that is attracting more market talk - the commission's wider Tranz Rail insider trading probe.
It is nearly a year since the Shareholders' Association asked the stock exchange and then the Securities Commission to look into big sell-downs by Sir Michael Fay, David Richwhite and Wisconsin Central Transportation.
Those shareholders sold at $3.60 and $3.70 per share in February last year before a price decline that accelerated a few months later, in late June and early July.
On July 5 of last year - after a sharp drop and a query from the stock exchange - the company revealed it was writing down assets.
Just over 20 weeks ago, the Market Surveillance Panel found the company breached listing rules by failing to disclose the writedowns immediately after a board meeting on June 27, 2002.
However, the panel discovered no evidence that directors had known that writedowns and a drop in profit were looming when shares were sold in February and March of last year.
Shareholders Association chairman Bruce Sheppard said the insider trading probe seemed to have "disappeared into the Securities Commission's black hole".
"The fact that the Securities Commission has gone quiet doesn't mean they're not doing anything, but it's worth asking the question: 'What are they doing?"
