New Mexico Securities Division Director Bruce R. Kohl
announced today the division has concluded its inquiry into
allegations that officials of Westland Development Co. Inc. had
violated state securities law by engaging in insider trading connected
with the proposed acquisition of the common stock of Westland by ANM
Holdings Inc.
"We have determined that there is insufficient evidence to warrant the filing of any action by the Securities Division in this matter," said Kohl.
Kohl emphasized that the division's inquiry dealt only with the issue of possible violations of the New Mexico Securities Act prohibiting insider trading, and should not be interpreted as having a bearing on any other allegations beyond the division's jurisdiction.
A state representative had requested the probe in response to allegations from constituents that corporate insiders at Westland had acquired company stock before a proposed stock purchase and merger transaction with ANM Holdings Inc. was publicly announced. The division received complaints alleging that officers and directors of the company had illegally traded in Westland stock.
"Our investigation found no evidence that corporate officials having non-public information about the ANM offer had traded in Westland stock in violation of legal restrictions on insider trading under State securities laws," Kohl concluded.
Westland initially made a public statement and filed a report with the Securities and Exchange Commission on Aug. 17, 2005, to announce an offer by ANM to acquire all of the outstanding common stock in Westland for a price of $200 per share. Previously shares of Westland stock had been selling in private transactions for $20 to $25 per share. Pursuant to a state statute passed in 1967, the former Town of Atrisco community land grant corporation converted to a for-profit business corporation named Westland Development Co. Inc.
Westland owns approximately 57,000 acres of land west of Albuquerque that previously had formed the Atrisco Land Grant. With limited exceptions only lineal descendants of the original incorporators of the Town of Atrisco community land grant corporation may own shares in Westland. At present there are approximately 6,100 shareholders in the company. Acceptance of the ANM proposal must be approved by a vote of the Westland shareholders.
"We have determined that there is insufficient evidence to warrant the filing of any action by the Securities Division in this matter," said Kohl.
Kohl emphasized that the division's inquiry dealt only with the issue of possible violations of the New Mexico Securities Act prohibiting insider trading, and should not be interpreted as having a bearing on any other allegations beyond the division's jurisdiction.
A state representative had requested the probe in response to allegations from constituents that corporate insiders at Westland had acquired company stock before a proposed stock purchase and merger transaction with ANM Holdings Inc. was publicly announced. The division received complaints alleging that officers and directors of the company had illegally traded in Westland stock.
"Our investigation found no evidence that corporate officials having non-public information about the ANM offer had traded in Westland stock in violation of legal restrictions on insider trading under State securities laws," Kohl concluded.
Westland initially made a public statement and filed a report with the Securities and Exchange Commission on Aug. 17, 2005, to announce an offer by ANM to acquire all of the outstanding common stock in Westland for a price of $200 per share. Previously shares of Westland stock had been selling in private transactions for $20 to $25 per share. Pursuant to a state statute passed in 1967, the former Town of Atrisco community land grant corporation converted to a for-profit business corporation named Westland Development Co. Inc.
Westland owns approximately 57,000 acres of land west of Albuquerque that previously had formed the Atrisco Land Grant. With limited exceptions only lineal descendants of the original incorporators of the Town of Atrisco community land grant corporation may own shares in Westland. At present there are approximately 6,100 shareholders in the company. Acceptance of the ANM proposal must be approved by a vote of the Westland shareholders.