Julia Simons

More Toll deal revelations

The further down the track (excuse the pun) that we go the more we are finding out about how inept Michael the Tank-Engine has been and how sharp Paul Little is.

Simon Louisson of NZPA has revealed that Toll Holdings boss Paul Little is also the Director of another comany that just happened to buy Toll shares two days before the deal.

It wasn’t chump change either, Namarong Investments Pty, bought 131,500 Toll shares at average prices of $A7.62. On April 29, he disclosed the purchase of 129,000 Toll shares a week earlier at an average price of $A7.67.

Before April, Namarong already had over 900,000 Toll shares. The shares rocketed to $A8.78 on May 6, rising A50c on the day after the announcement – creating a paper profit for Namarong of nearly $A300,000 ($NZ373,700) on the April share purchases. The shares were trading at $A8.30 today and no recent sales by Namarong have been recorded.

So there is a little (again no pun intended) riddle in all of that. Why would Toll Holdings boss get another company that he is a director and shareholder of to buy additional Toll Holdings shares that would net them so far $373,700 when a) If they were reluctant sellers and the consequence of selling something supposedly valuable would be a negative impact on the share price?, and b) On May 5 they were no longer reluctant sellers but rather ecstatic sellers and Paul Little was so ecstatic about the deal he may have got a company he was associated with to buy Toll Holdings on the premise that investors would think the deal rocked due to above the market deal he nailed Cullen with, the retirement of $200 million of debt, isn’t that insider trading but more importantly c) Who got the best deal?

Toll Holdings has raped the New Zealand Government taxpayer, bent Cullen over the table and given it to him up the chook and Cullen turned around and thanked him for the priviledge of the rogering and then paid him for it as well!!

There are many more questions to be asking over this little foray into train sets of Cullen’s.

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