Share market activism
A heartening trend in modern war led recovery capitalism is White House ethical investments and another is shareholder activism. Millionaires linked to secret deal - Craig Binnie
TEN of Australia's richest people swooped on shares in the same company that brought down Steve Vizard – all before crucial information was made public.
The Herald Sun has established the investors simultaneously snapped up shares in Sausage Software as Telstra chiefs, including Mr Vizard, held top secret talks about boosting its investment in the budding tech firm.
The investments were made soon after the Telstra board discussed the deal behind closed doors on March 2, 2000, and about the same time as Mr Vizard's illegal investment.
The millionaires – three of whom appear on the BRW rich list – sold either just before or after Telstra's Sausage buy-out was publicly announced on March 20, some pocketing profits as the price sizzled.
Sausage shares were selling for $5.04 on March 5. When the merger was announced on March 20 the share price was a record $7.40.
Mr Vizard was fined $390,000 and banned from being a company director for 10 years after he admitted using confidential information he gained as aTelstra director.
The revelations raise questions over the level of information about the highly confidential Telstra deal circulating in elite circles.
One of the investors said last night he bought dozens of hi-tech stocks and did not have inside information. He said he could not remember why he bought them.
A Herald Sun investigation has revealed:
SEVERAL families with cultural and social links bought shares within days of each other. Most of the families were from Toorak and Caulfield.
A PURCHASE by one of Australia's richest families, just before Mr Vizard invested.
AN investment by one of Australia's richest men.
AN investment by one of Melbourne's best-known and richest men and one of his family. A former associate also bought shares.
The network of super wealthy investors made their purchases within days of executives at Telstra, Sausage Software and Solution 6 planning to merge the two smaller companies.
Mr Vizard admitted he invested in Sausage Software only after receiving confidential Telstra boardroom documents on March 5, 2000, that showed the share price would rise.
The Herald Sun has chosen not to name the investors at this stage for legal reasons.
But it has passed details of the purchases to the Australian Securities and Investments Commission.
The corporate watchdog declined to comment on whether it was already aware of the rush on Sausage or whether it was investigating the purchases.
The Herald Sun has established that many of the investors who bought Sausage shares in the lead-up to its merger announcement have links through cultural groups or business; most are from Melbourne and the bulk live in or around Toorak and Caulfield.
Company documents show that a firm run by members of one of Australia's richest families became a Sausage shareholder early in March. They had sold their shares just days later.
Around the same time, an elderly widow associated with one of Australia's best-known companies also bought shares in Sausage.
Also in March a company that lists the wife of a former liberal MP as a director took a stake in Sausage. As the month progressed, Sausage continued to attract steady interest from wealthy Australians.
A firm owned by one of Australia's richest men bought into the company.
In the midst of the Sausage shares-buying flurry, Mr Vizard's accountant Greg Lay used the specially established company Creative Technology Investments to invest in the company on Mr Vizard's behalf.
As Mr Lay was buying shares for Mr Vizard, another private company was investing.
Most of the investors sold their shares a short time later.
One of the investors said last night he had bought shares in dozens of technology stocks and could not remember why he bought them. The man said he did not receive inside information and had only spoken to Mr Vizard once in his life.
"I don't recall buying into Sausage and I don't remember selling them," he said.
"To me it is like having a bet on a horse in a race. You have a bet, it wins or loses, and you move on to the next one."
The man said there were occasions when rumours went through the market and people jumped on to a particular stock.
Sausage's shares fell dramatically when tech stocks worldwide plunged on March 30, 2000.
It is possible some of the investors lost money.
Sausage Software, now trading as SMS Consulting, has refused to provide the Herald Sun with the number of shares that the investors bought. Crikey it's heartwarming to see such unselfish philanthropy and generosity isn't it. A ' win-win' for all and a rare good news story in todays troubled crony-Casino and crony-Cartel investment environment.
TEN of Australia's richest people swooped on shares in the same company that brought down Steve Vizard – all before crucial information was made public.
The Herald Sun has established the investors simultaneously snapped up shares in Sausage Software as Telstra chiefs, including Mr Vizard, held top secret talks about boosting its investment in the budding tech firm.
The investments were made soon after the Telstra board discussed the deal behind closed doors on March 2, 2000, and about the same time as Mr Vizard's illegal investment.
The millionaires – three of whom appear on the BRW rich list – sold either just before or after Telstra's Sausage buy-out was publicly announced on March 20, some pocketing profits as the price sizzled.
Sausage shares were selling for $5.04 on March 5. When the merger was announced on March 20 the share price was a record $7.40.
Mr Vizard was fined $390,000 and banned from being a company director for 10 years after he admitted using confidential information he gained as aTelstra director.
The revelations raise questions over the level of information about the highly confidential Telstra deal circulating in elite circles.
One of the investors said last night he bought dozens of hi-tech stocks and did not have inside information. He said he could not remember why he bought them.
A Herald Sun investigation has revealed:
SEVERAL families with cultural and social links bought shares within days of each other. Most of the families were from Toorak and Caulfield.
A PURCHASE by one of Australia's richest families, just before Mr Vizard invested.
AN investment by one of Australia's richest men.
AN investment by one of Melbourne's best-known and richest men and one of his family. A former associate also bought shares.
The network of super wealthy investors made their purchases within days of executives at Telstra, Sausage Software and Solution 6 planning to merge the two smaller companies.
Mr Vizard admitted he invested in Sausage Software only after receiving confidential Telstra boardroom documents on March 5, 2000, that showed the share price would rise.
The Herald Sun has chosen not to name the investors at this stage for legal reasons.
But it has passed details of the purchases to the Australian Securities and Investments Commission.
The corporate watchdog declined to comment on whether it was already aware of the rush on Sausage or whether it was investigating the purchases.
The Herald Sun has established that many of the investors who bought Sausage shares in the lead-up to its merger announcement have links through cultural groups or business; most are from Melbourne and the bulk live in or around Toorak and Caulfield.
Company documents show that a firm run by members of one of Australia's richest families became a Sausage shareholder early in March. They had sold their shares just days later.
Around the same time, an elderly widow associated with one of Australia's best-known companies also bought shares in Sausage.
Also in March a company that lists the wife of a former liberal MP as a director took a stake in Sausage. As the month progressed, Sausage continued to attract steady interest from wealthy Australians.
A firm owned by one of Australia's richest men bought into the company.
In the midst of the Sausage shares-buying flurry, Mr Vizard's accountant Greg Lay used the specially established company Creative Technology Investments to invest in the company on Mr Vizard's behalf.
As Mr Lay was buying shares for Mr Vizard, another private company was investing.
Most of the investors sold their shares a short time later.
One of the investors said last night he had bought shares in dozens of technology stocks and could not remember why he bought them. The man said he did not receive inside information and had only spoken to Mr Vizard once in his life.
"I don't recall buying into Sausage and I don't remember selling them," he said.
"To me it is like having a bet on a horse in a race. You have a bet, it wins or loses, and you move on to the next one."
The man said there were occasions when rumours went through the market and people jumped on to a particular stock.
Sausage's shares fell dramatically when tech stocks worldwide plunged on March 30, 2000.
It is possible some of the investors lost money.
Sausage Software, now trading as SMS Consulting, has refused to provide the Herald Sun with the number of shares that the investors bought. Crikey it's heartwarming to see such unselfish philanthropy and generosity isn't it. A ' win-win' for all and a rare good news story in todays troubled crony-Casino and crony-Cartel investment environment.
posted by professor rat at 1:35 PM
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