Deadline today for Whimp to show he's corrected offers

Bernard Whimp. Photo / Supplied

Bernard Whimp, the man behind several "low-ball" offers to buy shares in leading listed New Zealand companies, has until midday today to notify the Securities Commission that he has taken action to send out corrective statements to the shareholders he has approached.

The commission last week made orders against limited partnerships associated with Whimp following what it said were misleading offers made by him to buy shares in a number of listed companies.

The original offers appeared at first sight to be made at above the market value of the shares, but under the fine print the full payment would not be made for 10 years; and that the net present value of the offer was therefore much less than the nominal offer price.

It is not illegal to offer to buy securities at less than their market value.

However, under section 13 of the Securities Markets Act 1988, an offerer must not engage in misleading or deceptive conduct.

The commission said the statements were to have been mailed by fastpost by 5pm yesterday.

Communications manager Roger Marwick said last night there had been no indication as to whether Whimp had complied.

Whimp needs to confirm, in writing, to the commission that the statements have been sent by midday today. If he fails to comply, he faces a fine of up to $30,000 for each offence.

The orders have been made in respect of the offers - made on or around March 15 to 18 - for shares in TrustPower, Vector, Guinness Peat Group, Contact Energy, DNZ Property and Fletcher Building.

The commission is also considering taking further action arising from the offers.