NO STAIN HERE, SAYS SPOTLESS
QBE has denied engaging in takeover talks with potential buyers after its share price got a bump from rumours of a $ 20 billion offer from Germany’s Allianz. German newspaper Handelsplatt reported late on Sunday that the Allianz chief executive of financial services held informal talks with QBE counterpart John Neal before Christmas, in which he floated the idea of the offer. The Sydney- based insurer’s share price rose as much as 5.2 per cent in early trade yesterday — in a broadly negative market — but QBE said no offer was being discussed.
“While it is QBE’s policy not to comment on rumour or media speculation, QBE confirms that it is not in discussions with Allianz or any other potential buyer,” QBE said in a statement.
QBE shares fell back after the statement. CLEANING and catering group Spotless plans to vigorously defend any allegations it misled investors about its 2015 financial results.
Spotless is facing a possible class action with litigation funder IMF Bentham proposing to fund Federal Court proceedings against the group, alleging its 2015 results were misleading and in breach of its continuous disclosure obligations.
In a joint statement yesterday, IMF and law firm William Roberts Lawyers claimed the impact of an accounting policy change was not disclosed in Spotless’ 2015 accounts as required under accounting rules.
“Although Spotless announced that it had beaten its prospectus FY15 earnings forecasts, this does not appear to have been the case on a like- for- like basis,” William Roberts principal Bill Petrovski said.
He said Spotless’ 2015 net profit after tax was up by almost 25 per cent over what it would have been had the previous accounting method been used, and the group’s margins also appeared to be healthier than was actually the case. “Accordingly, it will be alleged that Spotless’ shares traded at an inflated price.”
Spotless yesterday said no proceedings had been served. “Spotless considers that it has at all times been in compliance with its continuous disclosure obligations and intends to vigorously defend proceedings in the event that they are commenced,” Spotless said in a brief statement.