Cue Energy rebels win pledge over shares

Cue Energy minority shareholders won an undertaking from the Cue board not to issue new shares, after a court hearing yesterday, a lawyer representing the minorities said.

A group of influential rebel shareholders was seeking a High Court injunction to stop directors raising more money pending an inquiry into a shareholder vote at last month's special meeting.

The High Court will hear substantive issues on the rebel shareholders' case on May 14.

The rebels, Todd Petroleum (owned by the wealthy Todd family), Browse Petroleum and Anzoil hold more than 40 per cent of the voting stock but were declared in default at the meeting by the Cue board.

The rebels wanted to dump chairman Michael Tilley and director Leon Musca, the Perth lawyer considered the driving force on the board.

Mr Musca represents Australian company Cable & Telecoms, formerly Cambridge Gulf Exploration, which bought 30 per cent of Cue in November 1999 and promptly rolled the old board including Todd chief executive Richard Tweedie.

By their reckoning, the dissenters held a majority of the votes, 125 million, against 95 million-odd proxies estimated to be held by the board.

- NZPA