IAG warns of share raids
“Mum and dad” investors in IAG are being told to avoid market raiders offering low prices for their IAG stock.
Australia’s largest home and contents insurer has warned its shareholders for the second time in 12 months about unsolicited bids for IAG that undercut the market price.
A company known as Share Buyback has requested a copy of IAG’s share registry, which the insurer believes will be used for making unsolicited bids.
In July the Australian Securities and Investments Commission (ASIC) barred Share Buyback from making offers for company stock because its name could mislead investors into thinking the offers were from listed companies.
IAG Head of Investor Relations Mike Woods says people associated with Share Buyback could send offers to investors from a new entity, Hassle Free Share Sales, which has made predatory offers to Bendigo Bank shareholders.
“Rather than accepting an undervalued offer, shareholders could consider not accepting or, if they want to sell their shares, sell them at the current market price through a broker who is licensed to trade on the ASX.”
IAG shareholders have forgone more than $13.8 million by accepting undervalued offers on the ASX. More than 12,000 IAG shareholders have accepted such offers, which means they have missed out on more than $1100 each on average.
IAG shareholders were singled out by notorious market spruiker David Tweed last year through his company Direct Share Purchasing Corporation. He has made six offers for IAG shares since 2002, and his companies have also been linked to raids on Axa, AMP, Coles Myer and Rinker.
Mr Tweed’s Australian financial services licence was cancelled by ASIC in November.
Australia’s largest home and contents insurer has warned its shareholders for the second time in 12 months about unsolicited bids for IAG that undercut the market price.
A company known as Share Buyback has requested a copy of IAG’s share registry, which the insurer believes will be used for making unsolicited bids.
In July the Australian Securities and Investments Commission (ASIC) barred Share Buyback from making offers for company stock because its name could mislead investors into thinking the offers were from listed companies.
IAG Head of Investor Relations Mike Woods says people associated with Share Buyback could send offers to investors from a new entity, Hassle Free Share Sales, which has made predatory offers to Bendigo Bank shareholders.
“Rather than accepting an undervalued offer, shareholders could consider not accepting or, if they want to sell their shares, sell them at the current market price through a broker who is licensed to trade on the ASX.”
IAG shareholders have forgone more than $13.8 million by accepting undervalued offers on the ASX. More than 12,000 IAG shareholders have accepted such offers, which means they have missed out on more than $1100 each on average.
IAG shareholders were singled out by notorious market spruiker David Tweed last year through his company Direct Share Purchasing Corporation. He has made six offers for IAG shares since 2002, and his companies have also been linked to raids on Axa, AMP, Coles Myer and Rinker.
Mr Tweed’s Australian financial services licence was cancelled by ASIC in November.