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ASIC calls for price check on Tweed’s low-ball Coles Myer offer

ASIC has urged Coles Myer Ltd (CML) shareholders to be wary of a recent low-ball offer from Direct Share Purchasing Corporation Pty Ltd to buy their shares for almost half their market value. A recent increase in complaints to ASIC about unsolicited share offers in relation to CML has prompted ASIC to issue a warning about the importance of making financial decisions carefully. CML shareholders have been offered $7.50 per share - an amount well below current market value - from Direct Share Purchasing Corporation, a company associated with David Tweed. “This offer is a bad deal because it substantially undervalues small shareholders,” ASIC’s executive director consumer protection, Greg Tanzer said. “When you get an unsolicited offer where the price is well below the market price, you risk losing money by selling your shares for less than you can get on the open market.” “Coles Myer shareholders who receive this offer should check the price in any daily newspaper and obtain professional financial advice. Don’t sign until you fully understand that you are accepting a price which substantially undervalues your shares. Inexperienced or elderly shareholders, or those under immediate financial pressure, are often most at risk of selling their shares without carefully reading the offer and clearly understanding the implications,” Mr Tanzer said.

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