KEY POINTS:
National Party leader John Key is to receive $36,000 of a $27.7 million Tranz Rail - now government-owned KiwiRail - insider trading settlement.
Thirty former Tranz Rail shareholders, including Mr Key's family trust, are to receive up to $1.20 per share each in compensation with a further 3100 investors getting about 10 cents a share in the country's biggest ever insider trading settlement, BusinessDay.co.nz reported.
The payouts stem from the $27.7m six defendants, including expatriate businessmen David Richwhite and Sir Michael Fay, agreed to pay to settle with the Securities Commission without admitting liability.
Mr Key's family trust, the JP and BI Key Family Trust, bought 30,000 Tranz Rail shares from a company owned by Mr Fay and Mr Richwhite in February, 2002.
The trust sold the shares in June 2002 by which time they were trading at just $1.02 each. The trust paid $3.60 each for the Tranz Rail shares meaning he still loses about $43,000 on the investment.
- NZPA
