Big Deals

Mark McInnes of David Jones has significant holdings in the company, in the form of ordinary shares, rights and retention share rights. He used to hold about 1.9 million ordinary shares, valued at about $7.2 million. But on October 20, McInnes announced to the exchange that he had reduced his direct shareholding by about 20%, selling 400,000 shares for about $1.5 million. The very astute McInnes got about $3.73 for each share against a record high of $3.80 paid for David Jones shares just days earlier on October 17.
Qantas CEO Geoff Dixon and CFO Peter Clegg have wasted no time in preparing the paperwork for $3.4 million worth of bonuses in the form of Qantas shares just a week after being approved at the company’s annual general meeting. At the meeting, shareholders approved 300,000 rights to Dixon and 100,000 rights to Clegg, which will vest in 2009. Separately, Clegg has acquired an indirect interest in 400,000 shares as part of a retention plan at Qantas. The parcel of shares is worth about $1.7 million.

Two executives at Seven Network have been awarded substantial share parcels from the company as part of the company’s Senior Executive Performance Management Plan. On October 20, it was announced that CEO David Leckie was awarded 56,908 ordinary shares with a market value of about $500,000. Separately, it was announced that the network’s commercial director Bruce McWilliam was awarded 22,511 ordinary shares with a market value of about $200,000. Shares in Seven Network reached a six month high of $9.50 on October 17 during the recent frenzy of activity surrounding media stocks.

The managing director of the Everest Babcock & Brown Trust, Jeremy Reid, has paid $975,000 for 275,000 shares in the trust in a series of on-market transactions between October 18 and 23. Similar to a hedge fund, the company seeks to provide absolute returns in all conditions over the long term.

There has also been some trading activity at successful retailer JB Hi-Fi recently, where CEO Richard Uechtritz and COO Terry Smart were awarded 200,000 and 150,000 options, respectively. Announced to the ASX on October 24, these parcels of options have been valued at $268,000 and $201,000. Separately, on October 27, Patrick Elliot announced that he had an indirect interest in the sale of 150,000 shares by way of his spouse. The sale netted the couple $840,000.

Over at the $4 billion Sonic Healthcare, executive director Phillip Dubois disposed of about 100,000 shares in which he had direct and indirect interests. The shares in which he had an indirect interest included 60,537 shares held by Dubois Superannuation Fund and 10,357 shares held by Farnbrook. Separately, he disposed of another 29,009 shares he had held directly. The sales were conducted on market over October 16 and 17 for a total of $1.3 million.

A director of the South Australian materials company Adelaide Brighton, Dave Burro AO, has been actively acquiring stock on market. In addition to buying 184,170 shares for about $400,000 in late September, Burro bought 300,000 ordinary shares for $740,000 though investment vehicles both directly and indirectly related to Burro.

Just last week we noted that two directors of the Hunter Hall funds management group, Wayne Hawkins, and Mark Forstmann, had been active sellers of the stock not long after the stock had doubled in value. Combined the sales were worth more than $250,000. Today we can announce that the sell down has been continuing. On October 25, Hawkins announced to the ASX that he had parted with 2000 shares for $22,200. The next day, Forstmann announced that he had offloaded 10,000 shares for $110,000.

Eureka Report readers will have heard of Paul Xiradis, CEO of boutique fund management group Ausbil Dexia. Ausbil Dexia operates four funds: an active equity fund, a balanced fund, a sustainable global equity fund and an emerging market leaders fund. On October 20, Xiradis acquired 10,000 stapled securities including 20,000 shares and 10,000 options in the emerging market leaders fund for $22,121. Just days before, on October 18, another director, Reubert Hayes, indirectly acquired 25,000 ordinary shares for $26,000. After listing on June 29 for $1.15, units in the fund have shown some weakness and closed at 104.5¢ on October 26.

Two directors of the Perth based litigation funding outfit IMF Australia (IMF) have been directly and indirectly acquiring large parcels of shares in the company. On October 24, entities associated with both John Walker and High McLernon each bought 625,000 shares at a cost of $500,000 or a total of $1 million. On February 9, 2005, the company was trading at a peak of $1.02 before it began a long descent. A year later, in February 2006, it was trading for 45¢. The stock has gradually strengthened since then and last traded for 77¢ on October 26.