Heartland Bank has warned shareholders of yet another low ball offer for their shares.
The seventh such warning from Heartland, which was formed as recently as January 2011, is again in relation to Washington Securities Pty Limited and comes hot on the heels of the bank's own share sale plan which it has launched to try and counter low ball bidders.
Australian John Armour's Washington Securities is offering 55 cents per Heartland share versus their current 87c market price.
"In view of the limited tools available to regulators to protect shareholders from these unsolicited offers, Heartland has established a share sale plan offering shareholders who hold not more than 10,000 Heartland shares the opportunity to sell their shares at the then current market price," Heartland said in a statement.
"If an eligible shareholder chooses to participate in the Plan, Heartland will facilitate the on-market sale of their Heartland shares through a broker and will pay the brokerage fees associated with the trade."
"Should you receive an unsolicited offer from Washington and are contemplating the sale of your Heartland shares, Heartland strongly recommends that you consider taking advantage of the Plan if you are an eligible shareholder. Participation in the Plan will ensure you receive a market price on the day of sale for your Heartland shares."
Craig Stephen, Heartland's head of treasury and strategy, told interest.co.nz last week he estimated Armour, and Bernard Whimp another low ball bidder, had probably made about $500,000 and $1 million, respectively out of Heartland shares.
Washington Securities, meanwhile, also launched a low ball bid for Fonterra bonds last week.
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"In view of the limited tools available to regulators to protect shareholders from these unsolicited offers, Heartland has established a share sale plan offering shareholders who hold not more than 10,000 Heartland shares the opportunity to sell their shares at the then current market price," Heartland said in a statement.
"If an eligible shareholder chooses to participate in the Plan, Heartland will facilitate the on-market sale of their Heartland shares through a broker and will pay the brokerage fees associated with the trade."
What are the local market cost structures associated with exiting odd lot positions that enable these opportunistic bidders to remain competitive?
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