Sir Ken Morrison may face watchdog scrutiny

In a statement to the market, Morrisons said it had received notification yesterday of a number of changes in the voting rights in the company held by Sir Ken.

These consisted of four share disposals between September 2009 and June 2010, during which time Sir Ken reduced his shareholding from 160.8 million ordinary shares, worth around six per cent of the company, to 24 million shares, worth around one per cent of the company.

According to stock market rules if you have a shareholding of over three per cent in a company you are meant to report any increase or decrease of one per cent.

Normally this happens when the stake falls below one percentage point.

Once shares have been sold the seller has two days to inform the company. The company then has to notify the market no later than the end of the following business day.

The FSA declined to comment yesterday on Sir Ken’s share disposals.

If it is proved that stock market rules have not been adhered to, the FSA has a number of options. These include private censure, public censure or a fine.

Such stock market irregularities are very rare and so far the FSA has only ever dealt out private censures.

Morrisons declined to comment yesterday.

In the statement to the market yesterday, the Bradford-based supermarket said: “The company understands that these changes in voting rights have arisen as a result of Sir Ken Morrison retiring as one of the trustees of certain family trusts and other estate and tax planning exercises undertaken by Sir Ken Morrison following his retirement as a director of the company.

“Further, based on an analysis by the company’s brokers of the company’s share register, the company estimates that members of the wider Morrison family continue to own approximately nine per cent of the company’s issued share capital.”

This is down from the previously held 16 per cent share.

Neither Sir Ken or his legal adviser at Kingsley Napley were available for comment.