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Associated British Foods' bosses shed shares

As bosses at Associated British Foods sell shares, we question whether investors should do the same
December 4, 2014

The two top bosses at Associated British Foods (ABF) have recently offloaded shares in the food and retail giant. On 24 November, chief executive George Weston sold 78,541 shares at 3,067p each and, on the same day, finance director John Bason ditched 99,614 shares at the same price.

IC TIP: Hold at 3205p

However, shareholders thinking of following their example may want to think again. Mr Weston's sale was to meet his tax liability from shares vested as part of his long-term incentive plan. While Mr Bason's reason for selling was partly to pay tax on his bonus windfall, but also for "personal liquidity reasons". It just so happened that both timed their disposals well: at the time of the sale the share price was at a 10-year high, although it's now even dearer at 3,205p.

The group's latest full-year results were overshadowed by a slump in sugar prices, which is set to hold back profit growth this year. But that doesn't seem to have scared the markets, presumably reassured by stellar performances from the company's other divisions - which includes Primark's seemingly unstoppable rise.

Buys       
CompanyDirectorDate No of shares Price (p) Value (£)  Holding (shares) Holding (%)
Acorn Income Fund D J Warr26 Nov 14              33,000 298       98,340              33,000 0.2
Bezant Resources Mr. E F G Nealon (ch)26 Nov 14             500,000 4.16       20,800             500,000 0.6
Big Yellow*Mr. J E Gibson (ceo)21 Nov 14                9,132 547.5       49,998          2,538,358 1.6
Big Yellow*Mr. N J Vetch (ch)21 Nov 14                9,132 547.5       49,998          9,175,351 5.9
Big Yellow*Mr. A C J Lee (ops)21 Nov 14                5,479 547.5       29,998             781,802 0.5
Big Yellow*Mr. R J Cotton21 Nov 14                4,566 547.5       24,999              68,485 0.0
Bioquell♥C H B Mills26 Nov 14             500,000 88.5     442,500        12,160,000 28.6
COLTS Giacoletto-Roggio20 Nov 14              20,000 135.5       27,100              50,000 0.0
Dunedin Enterprise Investment Trust B Finlayson26 Nov 14                5,810 345.25       20,059              87,867 0.4
EnQuest♥Dr J W Buckee (ch)20 Nov 14             470,596 64.28     302,499          3,182,779 0.4
Enteq Upstream R Pinchbeck20 Nov 14             148,701 24.95       37,101             526,812 0.9
Exova  A G Langlands25 Nov 14              50,000 163.1       81,550             190,909 0.1
Exova♥I El-Mokadem (ceo)20 Nov 14              38,569 162       62,482          2,000,000 0.8
Fenner N M Hobson (ceo)21 Nov 14              11,291 257       29,018             300,000 0.2
Frontier Resources International Mr. N L Herbert (ch)20 Nov 14        12,500,000 1     125,000        12,500,000 7.6
GB  D Wilson (fd)24 Nov 14              24,000 145       34,800             365,035 0.3
GETECH♥Mr. P F H Stephens26 Nov 14             100,000 44       44,000             988,000 3.3
Independent Oil & Gas Mr. M C Jordan20 Nov 14             181,818 11       20,000          6,957,560 10.0
Independent Oil & Gas Mr. M C Routh (inm ceo & ch)20 Nov 14             181,821 11       20,000          4,303,010 6.2
Independent Oil & Gas Mr. P C Murray20 Nov 14             181,818 11       20,000             951,420 1.4
Independent Oil & Gas Mr. P J Young (cfo)20 Nov 14             181,818 11       20,000        13,726,638 19.8
Independent Oil & Gas Ms. Marie-Louise Clayton20 Nov 14             181,818 11       20,000          2,732,591 3.9
London Capital   Mr. C Sabet (ch)26 Nov 14             650,000 35     227,500             650,000 1.2
LSL Property Services W M F Shannon26 Nov 14              10,000 293       29,300              20,561 0.0
Mitchells & Butlers♥A Darby (ceo)25 Nov 14                8,475 348.4606       29,532              94,128 0.0
Montanaro European Smaller Companies Trust R A Hammond-Chambers25 Nov 14                5,000 455.375       22,769              22,500 0.1
Montanaro European Smaller Companies Trust A R Irvine MBE (ch)21 Nov 14                5,000 452       22,600              65,000 0.4
Norman Broadbent*Mr. P A Casey (ch)21 Nov 14             469,144 19.1       89,607          3,682,242 21.1
Ocean Wilsons  K W Middleton (gfd)20 Nov 14              10,000 1070     107,000              20,000 0.1
Ocean Wilsons  K W Middleton (gfd)21 Nov 14              10,000 1069     106,900              30,000 0.1
Pinnacle Technology*Dr. J E Dodd (ch)21 Nov 14          1,569,230 6.5     102,000          3,081,538 6.7
Pinnacle Technology*Dr T J Black21 Nov 14          1,538,461 6.5     100,000          3,686,198 8.0
R E A  M Parry21 Nov 14                5,000 400       20,000              19,322 0.1
Rotala S L Dunn (ceo)24 Nov 14              99,976 55       54,987          1,364,634 3.5
Serco♥A G Cockburn (gcfo)21 Nov 14              84,600 173.7     146,950              84,600 0.0
Surgical Innovations*C J Rea OBE (intm md)24 Nov 14        30,354,893 1.3     394,614        69,814,083 14.4
UKrproduct♥A K Slipchuck24 Nov 14             451,750 7.5       33,881        14,939,133 37.7
UKrproduct♥S S Evlanchik (ceo)24 Nov 14             443,550 7.5       33,266        14,939,133 37.7
Utilico Investments Mr. E S C Stobart24 Nov 14              17,352 116.5       20,215              50,000 0.1
Wilmington  Mr. C J Brady20 Nov 14          1,300,000 210  2,730,000          4,493,819 5.2
Xchanging D Bauernfeind (cfo)26 Nov 14              20,000 167.5       33,500             520,959 0.2

Sells       
CompanyDirectorDateNo of shares Price (p) Value (£) Holding (shares) Holding (%)
Associated British Foods Mr. J G Bason (fd)24 Nov 14              99,614 3067.1  3,055,261             122,724 0.0
Associated British Foods Mr. G G Weston (ceo)24 Nov 14              78,541 3067.1  2,408,931          3,548,947 0.4
Close Brothers  J A G Howell (fd)21 Nov 14                9,691 1493.21     144,707             263,596 0.2
Ebiquity A W Beach (fd)21 Nov 14             189,476 105     198,950              20,000 0.0
Fidessa  A Malpass (fd)21 Nov 14                1,350 2368.46       31,974              85,529 0.2
Fidessa♥A Malpass (fd)21 Nov 14                2,100 2366       49,686              83,429 0.2
Genel Energy Dr A B Hayward (ceo)25 Nov 14             103,176 767     791,360          1,633,876 0.7
Genel Energy J Metherell (cfo)25 Nov 14             103,176 767     791,360          1,633,876 0.7
Learning Technologies  D Solomon (coo)21 Nov 14             200,000 17.25       34,500                     -   0.0
Lombard Risk Management J P McCormick26 Nov 14          4,000,000 13     520,000          5,076,756 1.9
London Stock Exchange  R Jerusalmi25 Nov 14              15,000 2190     328,500              52,130 0.0
Mucklow (A&J)  Mr. J D Parker (md)26 Nov 14              18,990 480.225       91,195              81,020 0.1
Mucklow (A&J)  Mr. D Wooldridge (fd & cs)26 Nov 14              13,066 480.225       62,746              76,689 0.1
Stanley GibbonsI G Goldbart21 Nov 14             122,853 300     368,559             245,698 0.5
Young & Co's Brewery♥T C F Sligo-Young21 Nov 14              12,000 1030     123,600          1,407,778 4.8

*placing/tender/open offer ♥spouse/connected party †Approved SIP