Multiplex in offer to investors

The Wembley stadium has missed its 2005 completion date

Multiplex, the Wembley Stadium developer, is offering investors cash after a probe over whether it kept them sufficiently aware of problems.

Multiplex said it would pay investors up to $32m Australian dollars ($25.1m; £12.8m) after an inquiry by Australia's securities regulator.

The regulator looked at announcements between June 2004 and December 2005, before it made six profits warnings.

Multiplex said it was pleased the agreement had been reached.

Review

James Tuckey, Multiplex UK chairman, said: "We are pleased this agreement brings to a close the exhaustive investigations by Australia's Securities and Investment Commission and allows Multiplex to put this investigation behind us."

The company said it would offer the $32m Australian dollars - or 80.98 Australian cents a share - for shares purchased between 3 February and 23 February 2004, soon before the firm issued its first profit warning.

Shares in the firm dropped following the warning before falling again later, when it warned of losses regarding the development.

As well as the cash offer, the firm said it would change its board of directors, so that most would be non-executive directors.

Multiplex also proposed embarking on an independent review of its disclosure policies, the conclusions of which would lead to recommendations.

The 90,000-capacity stadium was originally scheduled to open in 2005. However, the venue is now not due to open until 2007.

Following Wednesday's announcement, shares were buoyed by the news, rising 1.3%.