NAB shafts mum and dad investors
National Australia Bank is coming under increasing criticism from small shareholders over its institutional share placements and Share Purchase Plans. Some prominent media identities have even begun calling for NAB chairman Michael Chaney to be replaced over the issue.
Reportedly, 150,000 shareholders who applied for the full $15,000 allotment offered in the recent share placement plan were scaled down to 202 shares costing $4343. Previously small investors owned about forty per cent of NAB, but over the last year have seen their holdings diluted by institutional share placements worth five billion dollars while retail investors have been given the opportunity to buy one billion dollars worth of shares.
Source: The Mayne Report