Report: ASIC looking at David Gyngell selling company shares

Corporate regulator the Australian Securities and Investment Commission is investigating Nine CEO David Gyngell over reports he sold $1.5 million worth of shares in the company two weeks before Nine Entertainment Co. shares were downgraded.

On Friday, Nine said that it expected earnings before interest, taxes, depreciation, and amortisation to be between $285 million and $290 million, down from $311 million forecast in November.

News Corp reports Gyngell netted about $400,000 more than he would have netted for 700,000 shares, had they been sold this week.

ASIC is reportedly making inquiries to ­determine if the move breached corporate governance issues around disclosure, but has not opened a formal case.

In a statement sent to The ­Australian a Nine spokesperson said the shares were sold following ­approval of the chairman, and in compliance with the company’s share-trading ­policy.

“If we had been aware of a downgrade any time prior to ­Friday afternoon we would have announced it at that time. That is the ASX disclosure obligation which we have at all times abided by,” they said.

Yesterday Nine closed 16.12 per cent down at $1.67.

Meanwhile Seven West Media shares were down 12 cents at $1.065 yesterday after earlier hitting a low of $1.02.

“The demand for key franchise programming is stronger than in the prior year and the market response to our Olympic sponsorship packages has been very positive,” it said in a statement.