asic seeks antidote to fight tweed virus

ASIC seeks antidote to fight Tweed 'virus'

Ian Porter and Nabila Ahmed
August 10, 2006

SHAREMARKET scavenger David Tweed has copped his fair share of insults. And deservedly so, many would argue.

The corporate watchdog has come up with its own choice assessment of Tweed, in particular of his unscrupulous takeover bid for listed fund manager Clime Capital.

"We likened the bid to a virus that we did not want to let loose on our market," Australian Securities and Investments Commission deputy chairman Jeremy Cooper said in a statement yesterday. A virus, eh? Cooper told us he dreamed that one up himself.

ASIC has blocked the hostile bid by Tweed's private company Australian Share Purchasing Company, by threatening legal action unless it was withdrawn. And Tweed — being the coward that he is, according to Clime boss Roger Montgomery — has backed down.

Among ASIC's many concerns was that the bid was confusing, misleading and was a capital reduction in disguise. The watchdog was also worried that Tweed wanted to use Clime's money rather than his own to pay for the bid. Surprise, surprise.

Tweed's bid for Clime Capital followed his repeated attempts to join the company's board, change its constitution, remove the chairman and, finally, have the company buy back his 17 per cent stake. He has called five extraordinary general meetings since last April at a cost of up to $500,000.

While ASIC's action is good news for Clime shareholders, Montgomery isn't confident that he's seen the last of the meddlesome Tweed.

"We do not expect this to be his last attempt and shareholders need to remain vigilant," he said. Meanwhile, Montgomery said the board was "assessing our options". That's code for working out how they can sue the guy's tracksuit pants off.

http://www.theage.com.au/news/business/asic-seeks-antidote-to-fight-tweed-virus/2006/08/09/1154802961889.html