The trouble with non-binding takeover offers that create a false and manipulated ceiling for the target company’s shares which could be pledged or faced margin calls; There are numerous examples of where such buyouts have ended in tatters and some investors getting burnt

http://www.thestar.com.my/Business/Business-News/2015/07/21/The-trouble-with-nonbinding-offers/?style=biz

The trouble with non-binding offers

Tuesday, 21 July 2015

By: RISEN JAYASEELAN

IT has happened again. A buyout deal in which the offerer had stated a takeout price but subject to a due diligence exercise, has fallen through. This again raises the question of whether such conditional buyouts should have a disclosure of the proposed buyout price. The perennial concern in deals like this has been that the disclosure of a buyout price would create a false ceiling for the target company’s shares. There are numerous examples of where such buyouts have ended in tatters and some investors getting burnt (see table). Continue reading

Stuck in intervention rut; An upward manipulation of corporate earnings may be next on the agenda for Beijing as it continues to support tumbling stock markets

Stuck in intervention rut; An upward manipulation of corporate earnings may be next on the agenda for Beijing as it continues to support tumbling stock markets

Cathy Holcombe

4 August 2015 South China Morning Post

We can criticise Beijing for intervening in the stock market, but while up on that soapbox we might as well pull out the telescope and look to what’s coming next. Which is likely this: an upward manipulation of corporate earnings. Continue reading

How Toshiba delayed a $100 million loss with two words: ‘uncorrected misstatement’

http://www.reuters.com/article/2015/08/05/us-toshiba-accounting-auditor-insight-idUSKCN0QA2H120150805

Wed Aug 5, 2015 5:09pm EDT

How Toshiba delayed a $100 million loss with two words: ‘uncorrected misstatement’

TOKYO | BY NATHAN LAYNE AND EMI EMOTO

As more details emerge about years of accounts manipulation at Japanese conglomerate Toshiba Corp (6502.T), corporate governance experts say there needs to be more scrutiny of the role of the company’s auditors. Continue reading

Stock manipulation: Sapan Chemicals

Stock manipulation: Sapan Chemicals

5 August 2015

Moneylife

The share price of Sapan Chemicals was up 743%, in just about six months. On an average, there were just three-four trades per day Sapan Chemicals—earlier known as Suryadeep Salt Refinery & Chemicals Works—is into ‘development and marketing of software along with consultation for portfolio management’, according to its annual report. The Vadodara-based company, in its former and present avatars, has been pulled up several times by Securities and Exchange Board of India (SEBI) for capital market violations. In August 2014, the regulator charged it with the creation of an artificial market and price manipulation through matched transactions in the scrip of Kelvin Fincap. The company got away with a minor suspension. This was not the first time. In May 2006, too, a prosecution was launched against the promoter, Rajendra Rathod, for fraudulent and unfair trade practices. Continue reading