Leigh Clapham and Steve Vamos, two non-executive directors of David Jones, bought shares in the company a day after rival retailer Myer proposed a merger, according to the Australian Financial Review.
This week the corporate regulator said it did not have enough evidence to bring a case against the two directors, who also purchased the shares before sales data was released that saw David Jones’ share price rise.
According to the AFR report David Jones chairman Peter Mason received the Myer proposal for a $3 billion scrip merger on October 28 last year. It was rejected two weeks later, though Vamos and Clapham purchased the shares on October 29.
ASIC has confirmed it is prepared to follow up the new information, after details of the merger offer — rejected as it did not provide a premium for control and undervalued the company — were provided to the newspaper yesterday.
However ASIC, according to the report, became aware of the merger offer during its initial investigation into the share purchase, when it examined emails sent between the two directors and Mason, as well as David Jones’ legal team.
There’s more here.