UK independent ATM operator Cashbox has suspended its chief executive Carl Thomas while it investigates his share dealings following a recent bid approach for the company.
In a statement Cashbox says that between 3 January and 8 February this year, Thomas bought 303,000 shares and sold just over 1.5m shares at prices between 18 pence and 33 pence.
The vendor said on 2 February that it had received an early stage bid approach that could lead to an offer for the business. Three of the 20 share transactions that Thomas made took place after the vendor had released that statement.
"The board of Cashbox is investigating the circumstances surrounding these trades and in the meantime Carl Thomas has been suspended from his duties as a director of Cashbox plc," says the vendor is today's statement.
Cashbox says Thomas now holds 4.2 million ordinary shares in the business, which represents 6.91% of the issued share capital.
Cashbox was set up in September 2003 by Thomas - a former sales director at ATM firm Hanco which was acquired by Royal Bank of Scotland in 2004 - and his brother Matt. The firm floated on the Alternative Investment Market (AIM) of the London Stock Exchange (LSE) last year.
The vendor is reportedly facing a £2 million damages claim from Hanco - launched three year ago - relating to an allegation that Thomas illegally "diverted" an ATM contract from Hanco to Cashbox.
The vendor confirmed last week that a summary judgement was handed down against Thomas inn November relating to certain claims forming part of the litigation and an interim award application has been made by Hanco.
The next hearing on the case is expected on 21 February 2007.
After falling over 25% in morning trading, Cashbox shares were up 2.3% to 22.00 pence by lunchtime.