Tweed vs. Clime

[ghotib]

I posted a message a while ago about David Tweed buying into Clime capital, a small LIC in which I'm a shareholder. At the time I didn't realise what he was up to, but I've finally cottoned on that he's greenmailing, while pretending to be a shareholder activist. Yesterday was the 2nd of the four EGMs he's requisitioned so far, at which he was again soundly clobbered.

There's going to be a piece about it in the ABC Midday report if anyone's interested and around. It's getting quite interesting.

Cheers,

Ghoti

 

[ice]

Re: Tweed vs Clime

ghotib,

There was a short segment about the meeting on Ch9's market wrap this morning. Very ugly for genuine shareholders as the company has to waste time and effort convening farcical meetings.
I'm all for shareholder rights but this sort of abuse of the process needs to be regulated out.


ice

 

[happytrader]

Re: Tweed vs Clime

Yes I remember Tweed and his National Exchange back in 2002 when he was sending out his way below market offers for Amp shares. He came to my attention when someone just happened to mention he had been made an offer for his shares. I was shorting it at the time and realised this offer was incredibly ridiculous. Needless to say the word got out and they were able get a better deal selling at market or hedging. I've actually known someone doing this sort of thing but only on a very small scale afew years after the 1987 crash but never to the blatant, ripoff degree of Mr Tweed.

Cheers
Happytrader

 

[doctorj]

Re: Tweed vs Clime

For those interested, I noticed a report on A Current Affair on Tweed and Clime Capital. It was an eye opening report; needless to say I hope I never have the misfortune of owning shares in a company he attacks.

They showed lengthy footage of a Clime Capital General Meeting. Tweed was dressed in striped footy socks to the knee, a stripy shirt and a paper crown (of the same design that Hungry Jacks hand out to children) all plastered with the slogan "high fees, low performance". The highlights of the meeting showed Tweed harrassing directors to the point of shareholders becoming outwardly and vocally frustrated with him and directing their questions to him.

The report alleged that he's attempting to bully Clime into buying his shares out at a price per share equivalent to NTA, 10% more than the current share price which will enable Tweed to book an estimated profit of $900,000.

ACA have said they intend to follow up on the story and would like all viewers with more information on Tweed to send them an email. I didn't catch the email address, but I seem to recall it to be aca@ninemsn.com.au. It might be worth you folk that are effected by this monster to get together and send some information in. As you well know, the media can be a powerful tool.

 

[Julia]

Re: Tweed vs Clime

He was interviewed this evening on ABC's "PM" programme by their finance journalist. He was simply obstructive, arrogant and rude. At the conclusion of the interview, the presenter of the programme likened the task of interviewing Tweed to that of iinterviewing a solid brick wall.

Julia

 

[Julia]

Re: Tweed vs Clime

He was interviewed this evening on ABC's "PM" programme by their finance journalist. He was simply obstructive, arrogant and rude. At the conclusion of the interview, the presenter of the programme likened the task of interviewing Tweed to that of interviewing a solid brick wall.

Julia

 

[Profitseeker]

Re: Tweed vs Clime

Tweed Climes to new lows
Email Print Normal font Large font Send in the clowns: David Tweed arrives for yesterday's meeting.
Photo: Peter Rae
Advertisement
AdvertisementBy Lisa Murray, Sydney
November 30, 2005

DRESSED in a paper crown, wrap-around sunnies, board shorts and Hawthorn football socks pulled up to his knees, David Tweed was screaming for attention at yesterday's Clime Capital annual meeting.

But the sharemarket scammer, 41, did not need to wear a costume. After calling for three special shareholder meetings during the year, costing the listed investment company thousands of dollars, he already had the attention of the board and investors.

Clime chairman Roger Montgomery said Mr Tweed's agenda was to "harass shareholders" in a bid to bully the company into buying out his 19.9 per cent holding. Mr Tweed insisted he was just trying to "maximise the value" of his investment.

"He is trying to effect an exit strategy that is not available to other shareholders," Mr Montgomery said after yesterday's meeting.

"We are not going to entertain that. If we give in, that will empower him to do it to another company."

This is new territory for Mr Tweed, who is better known for offering old and vulnerable shareholders dud deals on stocks and suing the shareholders if they do not pay. In the past, he has targeted the share registers of companies including Insurance Australia Group, AXA and Aevum.

Yesterday's meeting in Sydney was the first chance Clime shareholders had been given to confront Mr Tweed, who had not bothered to show up at the previous meetings, sending his office manager instead.

One investor accused Mr Tweed of "annoying the heck out of everyone" and "making a complete fool of himself" by turning up in "fancy dress".

Another, Norris Smith, called on Mr Tweed to sell his shares in the company and at one stage offered to help remove Mr Tweed if he continued to disrupt the meeting.

Clime shares closed at 99 ¢, yesterday, a 7 per cent discount to their net tangible asset (NTA) backing. Mr Tweed wants to have his shares bought back at NTA, and even said yesterday he would consider calling a meeting to vote on winding up the company.

Those who attended the meeting seeking some sort of insight into Mr Tweed's character were disappointed.

Asked if he considered himself an ethical businessman, Mr Tweed said: "My activities are very open, for all to see, and each person can make up their own mind." In reply to other questions not related to Clime, he said: "I'm not giving free interviews here."

The Clime meeting came just days after the Federal Court described Mr Tweed's behaviour in making unsolicited offers to Aevum shareholders as "predatory and against good conscience".

 

[Happy]

Re: Tweed vs Clime

This is what democracy does.

Legislation can take years to appear if ever, but people who exploit loopholes will move on and it is never ending story.

We need some sort of logic to be used to judge people’s activities, not just technical aspects of pure law, detached from reality, representing twisted form of right and wrong.

 

[ghotib]

Re: Tweed vs Clime

I went to the AGM yesterday, and also to the EGM last week (which was a combined meeting in response to Tweed's 3rd and 4th requisitions).

Tweed has now made his intentions and his tactics clear, which is good for the rest of us.

Turning up dressed as a clown king was an unintentional kindness: it removed any risk that someone might have taken his attack on the company seriously. His questions and comment in the meeting took exactly the same line as those of his appointee at the last EGM: he attacks the company's funds manager for doing what the prospectus says he will, and he claims that the company is underperforming because it's share price is below NTA just like most LICs are most of the time. So if he's on the level, he's spent about 9 months and a lot of money building a 19.x% stake in the company without reading the prospectus and without researching the normal characteristics of LICs. Yeah right!!

Yesterday he said publicly that he wants to sell his stake at NTA. The chairman estimates that would give him a profit of about $900,000. Privately he's told company management that if they buy him out at NTA he'll "go away" (again, Yeah right!!!).

To date the direct cost to the company of Tweed's antics is of the order of $150,000. Also to date, shareholders have decisively defeated every move he's made, apparently because they are well aware of his history and his reputation. We're now at a point where there's an arguable legal case that his behaviour is vexatious.

I don't know what his exit strategy might be, but I think we're going to find out. His stake is so disproportionate that he's already been able to play games with the share price, but it seems that most other shareholders are quite happy to wait him out. The company's investment strategy is "permanent value" with a 25-year time frame; assuming the rest of us did read the prospectus and bought because of it, we're unlikely to be troubled by flimflam at this stage. Personally I hope he dumps his stock and depresses the price - I'd be happy to buy more - but I guess that's too much to wish for.

I think all the publicity is good because the more people know what a puffball bully he is the less people are likely to accept his scummy offers.

Entertaining and interesting times!!

Cheers,

Ghoti

Edited to add that I hold shares in Clime - just in case that's not obvious

 

[ghotib]

Re: Tweed vs Clime

This is what democracy does.

Legislation can take years to appear if ever, but people who exploit loopholes will move on and it is never ending story.

We need some sort of logic to be used to judge people’s activities, not just technical aspects of pure law, detached from reality, representing twisted form of right and wrong.

Things aren't quite that bad Happy. The judgements against Tweed show a very solid understanding of what he's doing and why. That includes the one where Tweed tried to sue CBA shareholders who went back on their agreement to sell to him at an obscenely low price. I don't have the address at the moment, but the judgement as well as newspaper reports are on the Web. Quite heartening

 

[Charlie]

Re: Tweed vs Clime

He's at it again; Offer statement from "Australian Share Purchasing company" (ASsPiC), set up by David Tweed specifically to attempt to take over Clime.

The offer statement is, unsurprisingly, full of many conditions.

As mentioned earlier in this thread, could his actions directed at Clime be considered "vexatious"?

 

[ghotib]

Re: Tweed vs Clime

Are you in this too Charlie, or did you see it in the press somewhere?

It'll take me a while to work through the offer document, and the company hasn't responded yet. My first reaction, on a quick and interrupted read, is that it doesn't give a fair opportunity to all shareholders because the price applies only until Tweed has 40% of the company. I don't know about the legality of that - I presume it's not illegal as such?? - but it's certainly predatory.

Going out for dinner shortly and I'm not going to think about this until tomorrow. Refuse to let Tweed spoil a good evening, no matter how hard he tries.

Ghoti

 

[Realist]

Re: Tweed vs Clime

If I was Clime Management, I'd have large bouncers implementing dress codes at all shareholder meetings. I'm sure the majority of shareholders would agree. And refuse an open floor, allow only short written questions, that the attendees can vote on which will be answered, any one whatsoever speaking during the meeting without being first asked to would be evicted and beaten to death out the back.

Simple really.

 

[ghotib]

Re: Tweed vs Clime

Announcement today from Tweed that he does not intend to proceed with his bid because ASIC has formed the "view the the takeover bid cannot proceed".

Maybe the toothless tiger has found a bite.

Ghoti