up 37% as lew raids register

Tuesday May 31, 2:33 PM
UPDATE: Australia's Globe Up 37% As Lew Raids Register

By Richard Noonan
Of DOW JONES NEWSWIRES

MELBOURNE (Dow Jones)--Australia's Globe International Ltd. (GLB.AU) surged 37% on Tuesday after an investment vehicle associated with local retail investor Solomon Lew emerged with a significant stake in the skate and fashion company.




The investment vehicle, Polytown Pty. Ltd., now holds a 5.9% stake in the company, according to a substantial shareholder notice issued on Tuesday.

A spokesman for Polytown declined to comment on the investment or the intentions of Lew, who owns a portfolio of retail-related assets including a major stake in retailer Coles Myer Ltd. (CM)

Globe, the subject of takeover speculation in the past, also declined comment on the share raid. However, a spokesman signaled the company isn't averse to Lew joining its register as a major shareholder.

"We don't comment on the transactions of individual shareholders," the Globe spokesman said.

But "anybody who buys a large tranche of shares, we see that as a vote of confidence. We see it as confirmation of the value there is in the company," he said.

Shares in Globe, controlled by co-founders Peter and Stephen Hill, closed up 11.5 cents at a two-month high of 42.5 cents.

The stock listed in 2001 at A$1 apiece and soon after reached a peak of A$2.50. It dropped to as low as 13.5 cents in early 2003 after a series of profit warnings and management shake-ups.

The share price fall raised speculation that Globe may be the subject of a takeover or be taken back into private hands.

Any takeover attempt would need to be done in cooperation with the Hill brothers.

Its portfolio of youth fashion brands include Gallaz, Mooks, Sista, World Industries and Enjoi.