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Direct Share Purchasing Corporation

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brerwallabi

brerwallabi

The Oracle
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What a cheek this company have... I have 1135 IAG shares valued at at the time $5.06, total value $5743.10 and this company sends me a letter offering to buy them for $3972.50. I returned the postage paid envelope with their letter of offer inside torn up in many pieces. Very disgusted by this organisation, but people actually fall for this. Why can't our government legislate against this kind of exploitation - does anyone know why this is allowed to continue?
 
thats bizarre i've never heard of anything like that?? who would give them the shares? Did they have a sales pitch for thier offer??

just dont understand how that would work
 
argh seems it does work...


from the IAG site
Updated 29/09/2005

Insurance Australia Group Limited (IAG) is aware that Mr David Tweed, through his companies National Share Purchasing Corporation Pty Ltd (NSPC) and Direct Share Purchasing Corporation Pty Ltd (DSPC), has launched more unsolicited offers for IAG shares.

IAG does not endorse any unsolicited offer by NSPC or DSPC or any other company.

NSPC offer

NSPC is offering shareholders $8.10 per share, paid out over 18 annual instalments of 45 cents per share. This means that shareholders will not receive final payment until the year 2023.

An offer payable over such a long time should be viewed with caution, given the time value of money, the lack of any security over future payments and potentially adverse tax consequences.

Shareholders who accept the offer may be treated for tax purposes as having disposed of their IAG shares now even though they will not receive final payment for 18 years. Shareholders are also not offered any security by NSPC to back its obligation to make instalment payments over the 18 years.

DSPC offer

DSPC is offering shareholders $3.50 per share, which is more than $1.50 below the lowest price at which IAG's shares have traded in the past year. Shareholders who sell at this price will be doing so at a significant financial disadvantage relative to what they could obtain in the open market.

IAG Group Company Secretary & Head of Investor Relations, Ms Anne O’Driscoll, said that following the Group’s warning on 31 May 2005, a number of shareholders had notified the Group they had received offers from NSPC and DSPC.

Both offers also include a grant of power of attorney from the shareholder to NSPC/DSPC, which has significant legal consequences.

This is the third series of unsolicited offers to acquire shares in IAG by companies associated with Mr Tweed in as many years. National Exchange, another company associated with Mr Tweed, made unsolicited offers on two previous occasions, in January 2003 and May 2002. Although IAG wrote to shareholders individually on each occasion, thousands of holders accepted the offers even though they were for less than the market price of the shares.

IAG has informed the Australian Securities & Investments Commission (ASIC) of the situation.

Shareholders who receive any unsolicited offer are urged to read the document carefully and obtain professional advice before deciding whether or not to accept the offer.

Please note that the advice in this note has been prepared without taking into account the objectives, financial situation or needs of particular shareholders. Before acting on this advice, shareholders should consider whether it is appropriate to their particular circumstances. Shareholders should also read any offer document carefully and consult a professional advisor before making a decision.
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and from here

http://www.smh.com.au/news/investment/not-the-full-quid/2005/09/12/1126377240826.html

Last year Tweed sued about 300 elderly victims after they realised they were being duped and tried to get out of the deal.
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what a complete bastard....
 
Yep, this is David Tweed and Yep, he's a bastard. Also a scumbag. Also, in his own words, someone who missed out on morals. Also someone who's continuing to make a lot of money out of small and novice shareholders.

I've just popped in here after finishing the draft of a letter to ASIC about Tweed in relation to Clime Capital, which I hold and which he's sliming around at the moment. The more complaints they get, the more ammunition they have against him.

Ghoti
 
ASIC's director of enforcement, Mark Steward, says the law is designed to ensure shareholders are informed as much as possible.
"When shareholders accept these types of offers they are missing out on the objective market price of these shares," he says. "That would not usually be in that person's best interest, so before agreeing to do this, we would urge people to take advice."

How do we fix guys like Tweed?
Easy, equip ASIC with the same powers that exist in the Trade Practises Act where you mislead and when you lie to the consumer can lead to huge fines totalling millions. I am writing to ASIC and ACCC as this company is behaving with a degree of unconscionable behavior as it is exploiting by knowing that a section of the population would be holding shares but have limited knowledge on how to tranact them so are therefore disadvantaged. Tweed is therefore taking unfair advantage of that position and contravening the Trade Practises Act in my mind.
 
brerwallabi said:
What a cheek this company have... I have 1135 IAG shares valued at at the time $5.06, total value $5743.10 and this company sends me a letter offering to buy them for $3972.50. I returned the postage paid envelope with their letter of offer inside torn up in many pieces. Very disgusted by this organisation, but people actually fall for this. Why can't our government legislate against this kind of exploitation - does anyone know why this is allowed to continue?
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Laws have been passed that make it mandatory to publish the current share price when making offers like these. But no doubt people like Tweed will exploit this or find a loophole (ie publish it in 6 pt font in yellow). He's been on ACA a number of times. Seems the guy has no shame.
 
brerwallabi said:
How do we fix guys like Tweed?
Easy, equip ASIC with the same powers that exist in the Trade Practises Act where you mislead and when you lie to the consumer can lead to huge fines totalling millions. I am writing to ASIC and ACCC as this company is behaving with a degree of unconscionable behavior as it is exploiting by knowing that a section of the population would be holding shares but have limited knowledge on how to tranact them so are therefore disadvantaged. Tweed is therefore taking unfair advantage of that position and contravening the Trade Practises Act in my mind.
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Good on ya Brer.

I'm taking a close interest in Tweed now because of his attack on Clime Capital. He's using the low ball offer tactic to acquire shares, but in this case he's also bought a lot on market because he's been building a substantial stake. He reached 5% early this year and 19.99% as of yesterday, and between 5% and now he's requisitioned 4 frivolous EGMs with umpteen idiot motions generating a forest of paperwork, all apparently with a view to harassing the board into buying him out. There have been 2 EGMs so far, both of which overwhelmingly rejected him. The next 2 are being combined into one, which I'm going to and which I expect will be quite well attended.

I understand this is a new venture for Tweed and that ASIC is well aware of it and very interested. Like you, I've written to ASIC, because I figure that the more complaints they get the more reason they have to act. And I guess that if a complaint from a minority shareholder reveals ignorance or naivity, that just reinforces the disadvantage you talk about.

It's quite an education, and not what I expected when I bought into the company. I have thought about selling, but I don't want to sell to Tweed and I don't want to give up on something I bought for the very long haul (like 25 years) because an unscrupulous bully like Tweed attacks it.
 
Call his bluff,make him sit on his 19.99% and sweat.
 

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Kauri said:
Call his bluff,make him sit on his 19.99% and sweat.
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And I thought the thing he sat on was his arse :D

How would you make anyone sit on his 19.99% and sweat?

Cheers,

Ghoti
 
ghotib said:
And I thought the thing he sat on was his arse :D

How would you make anyone sit on his 19.99% and sweat?

Cheers,

Ghoti
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He has deliberately targeted a company with a small market cap and one without any single large holdings. That made it easy for him to reach the 19.99% threshold and at the same time difficult for the company to organise any defence against him. If all shareholders realize what he is up to, ( and it seems they do judging by his failure to get a seat ), then so long as they keep voting against him he will get nowhere on that front. As for selling your shares, unless he launches a takeover bid, he can't buy anymore. Ignore him and see how long he is willing to leave his $5-6 million tied up. If he tries to unload that amount of shares the effect on the share price will probably leave him out of pocket. After all, it is probably his buying that has been supporting the share price. So in my opinion, so long as the company keeps all holders informed of what he is doing, and the holders vote in a block against any of his proposals, he has the problem. :2twocents
 
Hi Kauri

Just from observation over the years - Have you noticed how he makes his 'offers' when the 'glooms' really caught on. The is guy slick. 'The darkest hour is always before dawn' He knows it and works it. And by the way I would'nt be surprised if he uses sights like these as a 'barometer'

Cheers
Happytrader
 
Happytrader.
yes, slick is not quite the word I would have used. :D If he does lurk around in places like this, :swear: you Mr T****.
 
He can probably bleed the small company dry by just calling meetings.

Printing and postage of meetings can be quite expensive multiply that by many meetings and small budget Co, will fill the pinch eventually.

I think this, is the matter of who’s got deeper pocket, like unlimited stakes poker.
 
Same here Kauri!

Hi Happy.

Mr Tweed plays the numbers game. He sniffs out and hunts down weak hands - then divides and conquers. He does not waste time, effort and money on hands he can't win. Think predator.

I doubt he would tell me I'm wrong because he has no illusions about himself.

Cheers
Happytrader
 
About 1000 holders on the register, his calling meetings is likely to be more of nuisance value than financial.
Hypothetically..... form a shareholders action group, proxy the votes, block him at every turn. At 19.99% holding he can't buy more without making a T/O bid, (which I think is the last thing on his mind) so the buying supporting the s/p over the last few months has gone, added to the possibility that his involvement will depress the s/p, how long will he hang around if his " hard earned " money starts to bleed away? In other words, play him at his own game, only do it better.
 
Hey Guys
Look I have been aware of Tweed for quite a while but this is the first time I have been confronted by him. On this forum collectively we have a lot of power, if and the membership is 2000+( realistically slightly less active but still considerable) we get together to bombard ASIC & ACCC we can force some action against the tactics employed to gain profit by unconscionable behavior in acquiring shares from the disadvantaged. Its all up to you as individuals, I myself admit to occassional ramping - my enthusiasm for a good thing, but never blatent exploitation through methods of procurement that may currently be legal to gain through the disadvantaged. Please make you opinions known, not on this forum but to the bodies that are enpowered to supposed to protect us.We all know this is wrong lets do something.
 
Kauri said:
About 1000 holders on the register, his calling meetings is likely to be more of nuisance value than financial.
Hypothetically..... form a shareholders action group, proxy the votes, block him at every turn. At 19.99% holding he can't buy more without making a T/O bid, (which I think is the last thing on his mind) so the buying supporting the s/p over the last few months has gone, added to the possibility that his involvement will depress the s/p, how long will he hang around if his " hard earned " money starts to bleed away? In other words, play him at his own game, only do it better.
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Thanks for this. There are moves afoot for an action group.

One thing to bear in mind is that this is not just any small cap, it's small cap LIC trading well below its NTA and with a lot of cash. So a takeover might not be unattractive to him, in which case I guess his next move would be to trade small parcels to lower the sp??

All thoughts welcome. I've never been caught up in anything like this before.

Ghoti
 
Does he go by the name Ross Investments?

Received a letter from GPT (I hold) stating may receive a letter soon from Ross Invest and although they can't give investment advice check the current price and get independent advice if needed.

I think Guppy starts his day with something like "the sharks are circling and I will be bait if i'm not carefull"

Cheers
 
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