Bradken

Yesterday (Tuesday) morning, I spoke with the Personal Assistant, Karen Bright to MD, Brian Hodges as both him and the Chief Financial Officer, Steven Perry was away overseas on business. I told Karen that the share price of Braken has fallen 20 days in a row and yet the directors have not acted responsibly to make any announcement to the ASX. I questioned whether BKN has being meeting its continuous disclosure obligations under Listing Rule 3.1 I also mentioned that I have spoken to a number of Chinese and Asian investors who are unhappy with the share price performances of the company especially in the last month. I also mentioned a number of instances where shareholders read about market sensitive information in the financial newspapers a day before the company announced it to the ASX.

Last night, I filed an ASX Complaint Form with the ASX . In brief, I complained about the non disclosure of market information to the shareholders to explain the rapid decline of BKN share prices or to reassure shareholders, thus giving short sellers plenty of opportunities to short the market. I also expressed concern and questioned how the ASX has not followed up with any company enquiries of BKN when in previous occasions they are vigilant and would question any companies with rapid falling share prices on just a few days. I also mentioned the chairman of Bradken has rejected a bid of $2.50 from PEP yet issued redeemable convertible securities to Sigdo Kopers and Champ Private Equity (Champ), in which he is also the deputy chairman based on a conversion price of $2.00 at any time up to 18 months. I asked to ASX to look into the Chairman's apparent conflict of interest issue as well as the directors duty of care and obligations to explain to shareholders as to why a $2.00 offer in 18 months from Champ is better that an offer of $2.50 form PEP.

This ASX Complaint was sent to the company last night as well as a request for a register of the latest top 20 shareholders. I intend to consider utilising the Register to contact major shareholders to petition for a shareholders' meeting to encourage the Board to engage with PEP to determine whether the previous bid offer can be resurrected even if it means at a lower price and to question whether director have fulfilled their duty of case and lack of disclosure of information to the ASX contributing to the current large fall in share prices. I also discussed the possibility of seeking legal advice with our legal advisors and maybe Slather and Gordon on a possible class action about the failure of the directors to engage previously with PEP and instead recommended shareholders to accept an inferior offer from Champ and Associates in which the Chairman has a conflict of interest. Before I proceed with any further action, I have asked the directors or any executives to contact me with their responses via email or by phone.

This morning, I contacted the company again and spoken with Karen. She told me, the company secretary, David Chesterfield has received my email together with the ASX Complaint Form and attachment which were forwarded to Brain Hodges and Steven Perry. The company then proceeded to make the ASX announcement at about 9.00 am to explain no reasons for the decline in share prices. I thanked her for the prompt response and questioned why it took the company to make an ASX announcement after 20 days of falling share prices and only when I raised the complaint. She was very gracious and thanked me for bringing the above matter up.

Whilst waiting for a response from the company directors, wishfully in the next 3 working days, will Hotcopper Bradken shareholders consider contacting the company secretary, David Chesterfield and ask whether the directors of BKN owe them a duty of care to consider engaging with PEP again to resurrect the bid offer even at a lower price. Also ask why $2.00 from Champ in 18 months is better than an offer of $2.50 from PEP?

Alternatively if I do not receive a satisfactory response from the company within the next 3 working days, would Hotcopper BKN shareholders consider supporting me with their votes to petition a shareholders' meeting or take further actions such as filing complaints with the ASX and ASIC?

BRADKENHOPE