Wednesday 2 April 2008

Disclosure disaster

Those following the volatile markets today, would find this interesting reading from the Business Spectator...
  • Opes Prime fallout spreads further
    Resources looks to have had its hostile takeover bid for Golden West Resources derailed, after Fairstar revealed that it had exposure to Opes Prime Stockbroking $1 billion collapse as the Opes Prime fallout continues to hit local firms.
    The gold and uranium explorer revealed that it was seeking advice on the impact on a portion of its shareholding in Golden West Resources after receivers were appointed to the Melbourne-based broker.
    Fairstar, which owns 33% of Golden West after launching an ambitious seven-for-one all-scrip bid, added that it was also aware of a number of its own shareholders that hold their interests through Opes Prime.

    READ FULL STORY Opes Prime fallout spreads further 

And this commentary from James Thomson...

  • "As the fallout from the Opes Prime collapse spreads throughout the small cap market, one question is being asked and again and again: why didn’t anyone realise the extent of Opes’ lending? The simple answer: a lack of disclosure. Earlier today, boutique stockbroker Aequs Capital announced to the market that Opes Prime’s receivers hold 11.22% of Aequs’ issued capital. More importantly, Aequs managing director Drew Metcalfe also raised an interesting point by noting that neither Opes Prime nor ANZ have lodged notices of substantial shareholding with the company. "
    READ FULL STORY Disclosure Disaster

1 comment:

Anonymous said...

What will the effects be here in Cairns? What local companies are effected??