Forum Archive Index - July 2001

["Ben Dutton" <bendutton@sharechat.co.nz>]

Hi Johnn,

 

I should imagine that the listed company (whoever it is) certainly should be informing the public if this is happening.  But because you have given a relatively small amount of information I can't say for sure.

 

For example, if a company is in talks with another company, these can initially be held confidentially without having to inform shareholders.  Of course, once the deal is signed, then disclosure is mandatory and if knowledge of the talks "leak" and become common knowledge then the company should publicly confirm or deny that they are taking place.

 

Part of the new Insider Trading laws deal with this area of disclosure - from memory, a bit rusty on the details though, they propose something called "continuos disclosure" which means companies would have to keep shareholders informed during the entire negotiation process.  Of course, this has upset some people because it means that companies could potentially be put at a competitive disadvantage if they have to publicly announce all negotiations.

 

Nevertheless, unless you name the company and give some more specifics, I can't really give the correct answer to your question.

 

Best Regards

 

Ben Dutton

 

 

----- Original Message -----

From: Johnn Donaldson

To: sharechat@sharechat.co.nz

Sent: Thursday, July 05, 2001 3:23 PM

Subject: [sharechat]

advise please...when is a listed company required to inform shareholders when they want to sell off two thirds of the company business to a competitor ? are they legally required to do so ?