Ex-Telstra director in inside-trading case

SYDNEY - Former Telstra Corp director Stephen Vizard is being sued by Australia's securities regulator for breaching his duties to the nation's biggest telephone company by improperly using information for share trading.

Between March and July 2000, Vizard used confidential Telstra information to trade in shares of Sausage Software, Computershare and Keycorp, the Australian Securities & Investments Commission said yesterday.

Vizard, 49, was a director of Melbourne-based Telstra from 1996 to 2000. He breached his duty as a director by improperly using information given to him to gain an advantage for himself or others, ASIC said.

Vizard acquired price-sensitive information about a possible merger of Sausage Software and Solution 6 Holdings and used this to instruct Creative Technology Investments, a company associated with him, to buy A$500,000 ($550,000) of Sausage Software shares, ASIC said.

Telstra held minority stakes in both companies at the time.

He also acquired information about Telstra's decision to sell its 15 per cent stake in Computershare and used this to sell A$100,000 of Computershare stock.

He also used information about Telstra's decision to buy 51 per cent of Keycorp to buy A$250,000 of Keycorp stock, ASIC said.

Vizard has agreed with the facts giving rise to the lawsuit, ASIC said.

The regulator is seeking court declarations that Vizard broke corporate laws on three occasions, as well as fines and orders disqualifying him from managing companies.

The former Telstra director agrees it's appropriate for the Federal Court of Australia to find he broke the law, and decide appropriate fines and banning orders, ASIC said.

- BLOOMBERG