In the last few days all those people who own IAG shares will have received a letter from Hassle Free Share Sales Pty. Ltd., offering to buy those shares.
IAG shares were offered to those who had business with the NRMA when that body demutualised several years ago, and for that reason owning shares was a first experience for many of those involved.
Unfortunately, this offer seriously under values the shares. The offer - at $ 1.51 a share contrasts with the share price listing of $ 3.51 a share on the stock exchange on the day most letters arrived.
There is nothing illegal about this offer. It is legitimate to make a bid for shares or any other asset at any price the potential buyer chooses - and it is the responsibility of the owner to make a decision on that offer.
It is mainly a matter of ethics. In the present troubled times naive people may be tempted to grab the money without knowing what their shares are really worth. Many do not buy a daily newspaper, and many others have no idea how to determine share value by using the stock report - or consulting a broker.
For the company making the offer there is a fat profit to be made. The differential of two dollars a share will probably rake in a fortune - and this will be at the expense of the unwise !
It represents a warning to family members to be alert and discuss matters such as share offers with the elderly - and those who are under financial pressure because of a job loss or other fiscal reverse.
A time to think - long and hard - before signing on the bottom line !
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