Monday 23 June 2008

Predator Tweed needs rubbing out

The Australian Government would do well to take a big stick to predatory share trader David Tweed and others whose actions suggest they possess morals akin to those of ally cats.

Tweed, who changed his name by deed poll from David Tschernitz, preys on sha
reholders who have little awareness of the value of shares they own.

Tweed's companies, which include Direct Share Purchasing Corporation (DSPC), obtain copies of companies' share registers that show the names and addresses of shareholders and then use a mass-mailing strategy and post unsolicited offers buy shareholders' stocks for less than market value.

The Australian reports Tweed has had a victory in the Federal Court with a ruling that he can buy copies of share registers for a fraction of the cost of producing them.

Tweed's DSPC took legal action against financial group Axa Asia Pacific Holdings, alleging Axa had overcharged for a copy of its share register.

Axa argued that it was merely passing on the $17,195.39 charge levied by registrar Computershare, but judge Ray Finkelstein ruled on Thursday that this was not a reasonable amount and that Axa could charge only $250.

Axa has been ordered to refund $16,945.39 to Mr Tweed and pay his legal costs.

The decision removes one of the few barriers between Mr Tweed and the small shareholders he regularly targets with unsolicited offers to buy their stock for less than market value.

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