This is the web site of the non-incorporated UK (Newcastle) company making the take-over offer for David Jones.
The offer was made public on June 29, and lifted the volume of shares traded from 2.12 million the day before to 24.3million.The share price jumped from $2.25 at close the previous day to a new close at $2.59.
David Jones’ announcement lacked specifics of who was making the claim, the offer price, or the bona fide of the offeror but this did not deter investors from eagerly bidding up the price to a high of $2.69.
After diligent reporter investigations, and further enquiries by David Jones, the offer has been quickly withdrawn, but it does raise questions as to whether the originator of the bid profited by selling into the flurry of higher prices.
With ASIC investigating the matter we should soon know whether this happened.
This incident re-inforces the need for investors to take adequate care in scrutinizing apparent buying opportunities.