Insider trade allegations ruled invalid

Two Securities Commission investigations into insider trading have failed to find evidence to substantiate the claims.

One investigation related to the ambitious listed Auckland-based telecommunications company E-Phone, which announced on July 13 that it had formed an alliance with NCR and Hewlett-Packard in a bid to attack the public internet terminal and kiosk market.

Securities Commission chief executive John Farrell said shares in E-Phone rose from 25c to 34c on high volume just before the announcement.

The second inquiry related to an announcement by Spectrum Resources that it would change its business direction to become an e-commerce company. That was followed by announcements this year that it had acquired WEL Technology and that the pending appointment of a new chief executive would not proceed.

Spectrum officially swapped mining for technology as its core activity on June 8 with shareholder approval.

WEL Technology had developed a software billing system for electricity utilities licensed in New Zealand, the US, Canada and Malaysia.

- NZPA