EDGAR, the SEC’s system for handling electronic filings is a good thing, for the most part. But ease of access can be overdone.
“SEC Reviews Fishy Avon Bid,” Wall Street Journal, May 15, 2015 A1. A false takeover bid, filed through Avon’s EDGAR feed, sent Avon’s shares up 20%, before they dropped back. The FBI, among others, is investigating. “FBI Delves Into Avon Offer,” Wall Street Journal, May 16, 2015 B1.
What does it say when the system that the market relies upon for accurate and timely disclosures has weaknesses? Is this a case of trust but verify? This is different than spoofing a trade; this is spoofing a takeover bid. Lots more plaintiffs. But is a bid at a 200% premium, from a company in a country with no registered companies, believable?
