FOWL PLAY?
MARC HASENFUSS: Feathers get ruffled at the Sovereign AGM
AGM raises an issue that may have puzzled market watchers
Feathers were ruffled at the annual general meeting of poultry group Sovereign Food Investments The AGM of poultry group Sovereign Food Investments in Port Elizabeth last week addressed — or rather raised — an issue that may have puzzled market watchers – the spurt in the company’s share price in the months ahead of the private equity takeover bid by CapitalWorks. Since late March Sovereign’s shares have trekked steadily northwards – increasing by more than 30%. In late July there were some eye-catching spikes in the share price from R10.85 to R13, and then again in early August from R11 to R12.50. Independent investment manager Stephen Pratt noted the difficulty in acquiring parcels of Sovereign shares in recent months — but added that at the same time large block trades had been executed, sometimes at lower prices to his bids in the market. In essence, Pratt contended that over the past six months virtually all transactions of any substantial value transacted off-market were block...
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