Mar 10 2008
ABC Learning Lessons
I don’t want to seem stupid but I am not a smart man.
How is it that Eddy Groves former high flying corporate hero turned lame duck, on Friday the 7th of March 2008, was able to fly back into Australia and sell 12,165,301 ordinary shares for $2.1390488 per ordinary share?
Reviewing the total public share trading results for ABL (ABC’s stock ticker) for the entire trading period on Friday the data indicates that the share price never got past $1.75 per ordinary share. Who in their right mind would have paid 19% higher to purchase Mr Groves shares over those available on the stock market at a lower rate.
Possibly some back door deal done with a company/group interested in a position in ABC? If this is the case, are ordinary, off the street, shareholders allowed to do such deals?
Do any of you chief champs have any idea on the hard and fast rules here?
Good question Shirvy and i’ll be honest in that i don’t know the answer but i’ll have a punt and say it’s not easy to purchase a parcel of shares as large as 12.1m and if a buyer wanted to buy that many perhaps there is a way you can charge a premium over and above the current trading price??
Currently there are only orders for 4m shares on ABS {ABC correct stock code
} so 12.1m is a considerable size.
Just checked and $2.14 was their price while they were in a trading hold which finished Thurs last week. That’s probably where the price came from
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Ok so he found a buyer willing to pay a higher price to purchase more shares in 1 hit. Seems strange that someone would pay such a premium just to save themselves some extra trades. 20% is 20%, not to be ignored and that was when the price was at its very highest for a few minutes. Still seems unfair that Eddy can get that deal to me, but it sounds like it is ok to do it this way.
Anyone want to offer me $7.40 for my Telstra 2 shares? you can get all 800 of them ……
SJ
That does seem a bit unfair. He stuffs up and then he is able to sell shares at a higher price than anyone else on the market. Insider trading or insider knowledge I guess. That is the risk you run with the stock market I guess.