Plastic group under LSE scrutiny
Friday 18 June 2004
The London Stock Exchange was looking into the affairs of the plastics company 3DM yesterday, amid allegations of misleading investors and deepening confusion over the status of its most eagerly anticipated new product.
The retail investor favourite is at the centre of a vicious raid by short-sellers, who have passed information on the company to the LSE, which regulates the AIM where 3DM shares are traded.
They claim a major shareholder - Battlebridge, a Jersey-based company owned by a friend of 3DM's chairman, Ken Brooks - has sold shares without the market being informed. The company denies this and says it is mischief-making by the raiders who include the notorious short-seller Simon Cawkwell, known in the City as Evel Knievel.
Grant Thornton, 3DM's adviser, said last night it was looking at this and other claims that the company misled the market.
The developments came as 3DM shares plunged 20 per cent to 62.5p. They have halved in value since the start of June.
There was confusion, too, over the status of the most eagerly anticipated new product - a "bed", or base, for the back of a DaimlerChrysler truck, made of a plastic as strong as steel. The company's US development partner said work on parts for a DaimlerChrysler truck has been suspended until the autumn and could be delayed for months - just days after 3DM's annual results struck a bullish note.
Mario DiNello, head of 3DM's US manufacturing partner, Global Tech International, said he was waiting for DaimlerChrysler to supply the blueprint for the 2005 model by September before proceeding to ramp-up production. Asked how many beds could be produced this year, Mr DiNello said: "If we have to make a new mould, that is going to take time, and that could push the timeframe back a bit. If there is no model change, we can accelerate immediately."
Mr Brooks said production could be ramped up anyway using the existing mould. He stood by Monday's results statement promising accelerated production by the end of 2004, adding that sales of "5,000 by Christmas" were possible. Mr DiNello yesterday said "more than a dozen" beds had been produced, while Mr Brooks said "less than 100" existed.
- 2 Disney heiress Abigail disowns her share of family profits in West Bank company
- 3 The secret report that helps Israel hide facts
- 4 'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
- 5 Israel's propaganda machine is finally starting to misfire
A former custard factory, a Midlands bog and a Leeds cemetery all included in top 50 hidden spots in the UK
Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
Disney heiress Abigail disowns her share of family profits in West Bank company
'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
Drew Barrymore’s sister Jessica found dead in her car surrounded by 'dozens of white pills'
The secret report that helps Israel hide facts
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
A day in the life of Vladimir Putin: The dictator in his labyrinth
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Boozy, ignorant, intolerant, but very polite – Britain as others see us
- < Previous
- Next >
iJobs Money & Business
£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...
£450 - £650 per day + competitive: Orgtel: My client, a leading bank, is curre...
£350 - £400 per day + competitive: Orgtel: Senior Analyst, ALM Data, Halifax, ...
£500 - £600 per day: Orgtel: Java developer - Banking - London - Up to £600/d...