Conduct of New Zealand’s Feltex May Be Investigate
Wellington, New Zealand, June 3--The Shareholders' Association has asked the Securities Commission to investigate whether New Zealand's Feltex Carpets Ltd.'s investors were appropriately informed about the troubled carpet maker's prospects, the Business Herald reported Friday.
"We write to make a formal complaint regarding disclosure by the board of Feltex in its prospectus, issued in respect of its (flotation) last year, and subsequent conduct regarding ongoing disclosure," the association's director of advocacy, Ross Dillon, said in a letter to the commission.
The request follows the carpet maker's warning on April 1 that fiscal year net profit would fall from a forecast NZ$23.9 million to between NZ$15 million and NZ$16 million. The warning prompted widespread investor outrage, particularly as the company had said just over a month earlier that projections for the full year remained "achievable".
