Vector chair appalled at latest Whimp trickery

Vector Chairman Michael Stiassny Photo / Brett Phibbs

Auckland lines company Vector says it is appalled investors are the target of another predatory offer to sell their shares for much less than they are worth.

NZ Investment Securities LP, a company linked to Bernard Whimp, is offering investors above-market prices for their shares, which will be paid off over 10 years.

All future dividends are foregone from the time the offer is accepted, Vector said.

Vector chairman Michael Stiassny described the offer as "blatant trickery" which was targeting investors who may not read the fine print about the payment period or understand they would be handing over their dividends to NZ Investment Securities LP.

Stiassny said the Vector board did not endorse the unsolicited offer to shareholders.

He advised shareholders to be wary of the offer and seek professional advice before accepting the offer.

"There is no certainty that the instalments would be paid and shareholders should be aware they would become unsecured creditors in the event Mr Whimp fails to meet his payment obligations," Stiassny said.

Stiassny is also calling on regulatory authorities to intervene and fast track a proposed change in legislation that would offer shareholders better protection from unsolicited offers.

"Changes to legislation are needed urgently - this is the second low-ball offer Vector shareholders have received from Mr Whimp in the last four months."

"It is imperative that robust legislative changes are made quickly to protect shareholders," he said.

Whimp's previous predatory offers have not broken existing laws but the Securities Commission said yesterday they were looking closely at the latest ones.

Telecom, Fletcher Building and TrustPower shareholders have also been targeted by low-ball offers in recent days.

In two-page letters, TrustPower and DNZ shareholders are being offered above-market prices for their shares but in the fine print are told they will be paid off over 10 years. They miss out on dividends that would be paid out over that time.

In relation to previous offers, Whimp has said he would "offer whatever I feel like paying".

- NZ HERALD ONLINE