Faithful investors 'deserve 24c rate'

By KARYN SCHERER

Small shareholders who have stuck with Air New Zealand through the most turbulent period in its history say they, not the Government, should have been given the chance to buy shares at just 24c each.

Shareholders' Association chairman Bruce Sheppard said yesterday that investors were obviously relieved statutory management no longer loomed as a possibility for the national flag-carrier.

But many were still pessimistic about the airline's future, believing it needed more than $885 million.

Mr Sheppard said it was telling that neither Brierley Investments nor Singapore Airlines was prepared to spend more, even at 24c a share.

Many small investors could have panicked already and sold their shares in the airline, "and for once they may have got it right".

Nevertheless, it was a travesty that those who wanted to put more money in had not been given the chance to do so at the same rate as taxpayers.

"We would still prefer to see the Government underwriting a rights issue to all shareholders rather than putting the money in upfront."

Mr Sheppard said the Government could have structured the deal so that any capital it invested became convertible notes.

"At least then small shareholders get the opportunity, if they wish to, to put their money in."

Many small stakeholders were also outraged at the fluctuating share price as a result of the Government's public comments on Air NZ's future, he said.

"From the time Helen Clark opened her trap and said, 'you shouldn't sell', a whole bunch of people have bought and sold shares ... at a price in excess of 24c."

On moral grounds the Government should recompense people.

Mr Sheppard said he expected a huge turnout for Air NZ's annual meeting, rescheduled for late December. "They will want to roast someone or two."

Many shareholders were also disappointed that Brierley continued to have a representative on the board.

"The influence of the existing major shareholders must now be dealt with because if anyone is to blame for this mess it is the major shareholders, and more particularly Brierley and its board representatives, and they all need to go."

Manurewa Machine operator Stuart Collins, who owns fewer than 1000 Air NZ shares, said yesterday that he was relieved by the rescue package but remained concerned about the share price.

He would try to get the day off work to attend the annual meeting.

"It will be very interesting. I would be interested to know who the Government intends to appoint to the board, too."

nzherald.co.nz/aviation

nzherald.co.nz/travel