The Securities Commission has found no securities law breach in high trading of Allied Farmers shares last week.
Analysis of trading showed that the large volumes were caused by one investor selling a significant holding in Allied Farmers shares, the commission said today.
Last Friday, the commission received a referral from sharemarket operator NZX concerning "abnormally high" trading volumes of 353,333 Allied Farmers shares the previous day, when the share price fell from 28c to close at 20c, with a total value traded of $78,695.
A further 1.03 million shares were traded last Friday, when the shares traded at 19c or 20c per share with a total value traded of $206,761.
The commission said it reviewed information provided by the selling broker via NZX and conducted its own inquiries. It found no evidence of market manipulation or insider trading on either day.
Last Tuesday, Allied Farmers shareholders backed a plan worth around $400 million to buy the assets of failed finance company Hanover Finance.
The deal, in which Hanover investors are paid in shares, yesterday narrowly secured the necessary 75 percent support of Hanover investors.
NZPA