re: another corporate rort? Now let's see if the corporate...

re: another corporate rort?
Now let's see if the corporate watchdog has any teeth.........




The Australian.
5.6.03

Brazin's Price Yoyo Probed.
By Katherine Jimenez.


ANGRY shareholders have raised questions over the wild share price fluctuation of retailer Brazin in the days before its founder, Brett Blundy, unveiled plans to delist the company.
The Australian Stock Exchange is already investigating the dumping of 1.6 million shares at 58c by an unidentified investor last Thursday, just three trading days before Mr Blundy announced a 78c offer for the company.
"It just all looks too suspicious,'' said one shareholder. "It is interesting how the share price can be sitting at 70c one day and just 56c the next ... something pushed the price down,'' he said.
Based on Brazin's top 20 shareholders list, only the top four investors could have offloaded such a large slab of shares. They are Yoda Holdings and Coloskye -- owned by Mr Blundy -- RBC Global Services Australia Nominees and National Nominees.
Harvey Norman chief Gerry Harvey was believed to have bought the shares. Mr Harvey, who could not be contacted last night, confirmed to one newspaper that he was behind a big share acquisition last week. Mr Harvey also bought into Brazin just over a year ago, buying 500,000 shares at $2.30.
If Mr Harvey now accepts the 78c offer, he will be sitting on a paper loss of $760,000 on that initial investment -- but that will be offset by a profit of about $400,000 on his latest share acquisition.
Less than two weeks ago, Mr Blundy's Yoda Holdings sold down its interest in the company from 63.7 per cent to 62.7 per cent. The sale price ranged from 63c to 65c.
The ASX said it would investigate the trading before Tuesday's announcement.
Meanwhile, shareholders are seething about Mr Blundy's about-face on the future of the company. Mr Blundy told The Australian in April that privatisation was a "dead issue''. What has changed is unclear, but Mr Blundy said this week his decision had been a sudden one.
The Australian Shareholders Association said it had concerns about the selective share cancellation procedure being applied by Mr Blundy to effect the buy-out.
"It should only be used for a proper company purpose,'' ASA spokesman Stephen Matthews said.