Share Express dealt a blow by ASIC on its unsolicited low-ball offer 31 May 2008 - The market opportunist, Share Express Pty Ltd, has been dealt a blow in its attempt to lure Telstra shareholders to sell their shares at below-market price. Share Express was offering to buy Telstra shares from them at $2.72 a share when the market price was $4.54. The offer was mailed out on 29 April 2009.

The Australian Securities & Investment Commission issued a stop order on Share Express from proceeding with its offer as the regulator believed the company may have misled the shareholders. Share Express did not clearly make it known that the company could withdraw its low-ball offer at any time. Also, the letter could have created an impression that shareholders who have accepted the offer cannot withdraw from it.

The Corporations Act 2001 stipulates that shareholders have at least one month to consider the offer. It also requires that the information provided in an offer letter be set out in a clear, concise and effective manner. If an offer does not comply with the law, shareholders may be entitled to withdraw their acceptance.

Share Express is entitled to withdraw its offer, although generally not within one month of the date of the offer.

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