Question Mark

The Carsons and JKH Groups recent acquisition of Aitken Spence shares in Union Assurance Ltd has got the securities watchdogs attention.
The Securities & Exchange Commission says it is looking into the issue as to whether both parties acted in concert and triggered the Takeovers & Mergers code.rn

rnPresently, Carsons owns 36.91 percent and JKH owns 35.95 percent, effectively controlling 72.86 percent of the insurance company.rn

rnThe SEC report is expected on Wednesday. rn

rnHowever, legal and market opinions were divided as to whether a mandatory offer was needed.rn

rnUnder the Takeovers & Mergers code, the onus is on the party who crosses the 30 percent limit to make an offer within 28 days at the highest price the share has touched within the past 12 months.rn

rnMarket analysts expect both parties to make a joint offer to other shareholders. Few investors had also bought into UAL in the hope of making a quick buck in the event of a mandatory offer.rn

rnAt the close of trading, JKHs share