Bogus share orders given

Press, 18 March 1982, Page 23

Bogus share orders given

NZPA Melbourne Police inquiries into hoax orders for about sAusts6 million worth of oil shares on Australian stock exchanges swung to London yesterday. Australian police, New Scotland Yard, Interpol, and Australian and London stock exchanges are trying to find a man who made a false offer to buy between five and 50 million shares in Woodside Petroleum. The apparent hoax followed a speculative report in the London “Sunday Times" which was published in Australia on Monday. The report said Japanese interests were about to bid for Woodside Petroleum shares. On Monday a man telephoned two Melbourne brokers — D. and D. Partners and Potter Partners, and Sydney brokers, Ord Minnett. In phone calls from Lon-

don he used three names, Frederick Johnson, George Hedges and Arthur McConnell. The brokers said he sounded like a competent share dealer. He told them he was acting on behalf of the Japan International Bank which, he said, wanted to buy up 10 per cent of Woodside’s 500 million shares. He offered about $1.13 a share — about 35 cents above the market price. But a check by the brokers with Japan revealed no bona fide orders had been made. Japanese banks complained in turn to London police. A warning was issued to buyers on Australian exchanges yesterday by Woodside to check credentials of anyone placing big orders for Woodside shares. The incident made no impact on Woodside trading on

Tuesday and no mischief was done. The bogus calls came after rumours about the possible sale of B.H.P. Company, Ltd’s and the Shell Company of Australia, Ltd’s 43 per cent stake in Woodside to the Japanese petroleum group Nippon Oil. Woodside executives said there was no substance to the “Sunday Times” report and spokesmen for B.H.P and Shell said they had neither been approached to sell their holdings nor would consider pulling out of Woodside. Woodside’s general manager administration (Mr John Fitzgerald) said there was no truth in the rumours. “It seems to be rubbish and without foundation,” he said. Institutions dominate Woodside’s top 20 shareholders along with B.H.P.’s and Shell's controlling interest and brokers said they did not know of any large

shareholders wishing to dump Woodside stock. The project manager of Australia’s largest single resource development has 500 million shares on issue and less than one per cent of the group's issued capital has changed hands on Australian stock exchanges in the last week.

Woodside’s share price has been dragged lower by the savage downswing of the market but the gloss of Australia's glamour resource project has also dulled because of production and contractual problems.