The Securities Commission has found no securities law breach
in high trading of Allied Farmers shares last week.
Analysis of trading showed that the large volumes were caused
by one investor selling a significant holding in Allied
Farmers shares, the commission said today.
Last Friday, the commission received a referral from
sharemarket operator NZX concerning "abnormally high" trading
volumes of 353,333 Allied Farmers shares the previous day,
when the share price fell from 28c to close at 20c, with a
total value traded of $78,695.
A further 1.03 million shares were traded last Friday, when
the shares traded at 19c or 20c per share with a total value
traded of $206,761.
The commission said it reviewed information provided by the
selling broker via NZX and conducted its own inquiries. It
found no evidence of market manipulation or insider trading
on either day.
Last Tuesday, Allied Farmers shareholders backed a plan worth
around $400 million to buy the assets of failed finance
company Hanover Finance.
The deal, in which Hanover investors are paid in shares,
yesterday narrowly secured the necessary 75 percent support
of Hanover investors.
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