mis shambles, page-4

ahh Now I understand the mis management put out a statement that everything is hunky dorey - and every one believed them and bought up the shares.

pigs might fly.

and here is an interesting article from Alan Kohler's Business Spectator:

Midwest Corporation, a takeover target for Murchison Metals and Sinosteel, has been struggling with a number of inhouse controversies, The Australian Financial Review reports.

According to the paper, Ken Talbot of Macauthur Coal, who owned a six per cent stake in the firm, was excluded from a share placement in 2007 which saw deputy chairman David Law gaining 3.5 million discounted shares as part of an sub-underwriting fee.

After the placement, Ken Talbot, who had offered to buy more Midwest shares at a premium to their trading price, sold his stake in the Western Australian-based miner. Mr Law currently holds a 13 per cent stake, which he paid $12.7 million for and is now worth $120 million.

A number of previous employees and directors have supported Mr Talbot's claims, telling the paper that Midwest did the placement against their wishes and in an ineffective manner.

It is also alleged that Mr Law was instrumental in the removal of managing director Stephen de Belle and director Bob Duffin which resulted in the resignations of company secretary Brett Manning. None of this would ever be relayed to investors despite Mr Manning's best efforts, the paper reports.

Also caught up in the controversies is Terrain broker Max Carling who said he was "dudded" by Midwest chairman Jesse Taylor in 2004 over a $6 million placement of shares, which were then placed in Patersons Securities. Mr Carling has since taken legal action, which was settled for a confidential amount.

The paper refers to rumours surrounding the company including stories of bribery, kidnapping, preferential treatment, doctored board minutes, Australian Securities and Investments Commission investigations, secretive shareholders and disgruntled stock brokers.

The paper reports that Mr Law has previously been charged with bribing a public official in his native Malaysia, but the charges were dropped.