Pero's 'hands tied' over Origin freight division

Mike Pero

Multi-millionaire Mike Pero is still determined to buy the freight business of Origin Pacific but says he can't make a quote because the troubled airline won't show him the books.

According to sources, Origin has given courier specialist Freightways exclusive rights to conduct due diligence.

"My hands are tied," Pero said yesterday. "Everyone's saying, 'Who would in their right mind give due diligence to one customer at a critical time?"'

It wouldn't take long to check the books once approval was given.

"I don't need a lot of time for due diligence - I can do that within a day," he said.

Pero was disappointed about Origin's troubles but didn't believe there was any future for relaunching a passenger service.

"I hate to say it but that decision to continue running to me, if I look back from the time I left the board ... well over a year [ago], even then it was obvious we were fighting a lost battle."

If the party looking at Origin's freight business was indeed Freightways, Pero said he believed several customers, who were also competitors of the courier company, would move business elsewhere.

Pero became a director and 25 per cent stakeholder of Origin in 2004 when he helped the Nelson-based airline fend off bankruptcy.

Freightways would not comment yesterday about any interest in Origin.

First NZ Capital analyst Andrew Mortimer said there was some logic in Freightways buying a part of Origin's freight business.

"But, in reality, it is just a small acquisition, just a few contracts, you are not buying an actual asset base," Mortimer said.

"Origin Pacific has time-sensitive, over-night freight that would fit with Freightway's business but I do not think it would be interested in the whole portfolio."

Origin managing director Robert Inglis could not be contacted yesterday to confirm details of the discussions.


ORIGIN PACIFIC

* Passenger operations were suspended last Thursday, the freight operation continues.

* Nearly 260 passenger service staff jobs cut.

* Mike Pero has offered to become major shareholder and chief executive of the freight business.

* Freightways has been given rights to exclusive due diligence.


- Additional reporting by Jenny Keown