article on globe

Lews tipped as Globe circlers
By Katherine Jimenez
July 30, 2003
GLOBE International's share register faced another assault yesterday as investment bank UBS crossed a large tranche of shares for a buyer - possibly the family of Solomon Lew.

The raid came as Globe chairman Paul Isherwood appointed Michael Sonand as the group's new chief executive and Stephen Kelly as chief financial officer.

Mr Sonand had been acting chief executive since March following the resignation of Mel Sutton.

A line of 5 million shares was crossed after the market opened yesterday morning. At a price of 29.5c, it was worth close to $1.5 million. In total, 11.4 million Globe shares changed hands yesterday.

This is the third time in just two weeks that a large line of Globe shares has changed hands. It is understood that ousted Coles Myer director Solomon Lew and his son Peter were behind the two previous raids.









Earlier this month, a line of 8 million shares crossed. Within days, a second parcel of 15 million shares moved through Southern Cross Securities. Combined, the stakes represent more than 6 per cent of Globe.

Mr Lew's private company Century Plaza Investments and his son's Australian Retail Investments were believed to be behind the buying.

Solomon Lew used Southern Cross to build his options voting block during his failed board re-election campaign at Coles Myer last November.

The Corporations Act says a shareholder must disclose an acquisition if its interests represent a holding above 5 per cent. But if the purchases were bought in separate entities, then the buyers would not need to reveal their stake.

The motives behind the acquisitions remain unclear, given that company founders Peter and Stephen Hill own about 60 per cent of Globe and have no intention of selling.

Shareholder David Williams, who claims to have built a stake of about 2 per cent in the past couple of months, said Globe needed a pair of "strong hands" like Mr Sonand and Mr Kelly on the operational front. This would free the Hill brothers to focus on business development.