Uncertainty shadows Vector share float

By CHRIS DANIELS

The future of a public offering of shares in Auckland lines company Vector is looking increasingly uncertain, with its board choosing to spend its time on other, presumably more pressing, matters.

Owners of Vector's recently issued capital bonds have yet to receive any indication of whether a float is even still being considered by the board of the lines company.

Any bondholder will have the right to invest in a future float of Vector, with every dollar of capital notes giving the bondholder the right to get 50c worth of Vector shares at a 2.5 per cent discount to the offer price.

If there is no float, the interest rate on the bonds increases by 1.5 per cent.

But exactly what is happening with plans for the offering still has not been clarified either by Vector management or its board.

The bonds prospectus said the company was "working towards" completing a listing by next September, while Vector chairman Michael Stiassny said no "absolute assurance" could be given.

Stiassny said last week that any decision on a float was "some time off".

The board was concentrating on the nuts and bolts of merging Vector and UnitedNetworks, which it successfully took over last month.

"The board is focusing on the day-to-day integration and as we move forward, one of the things we are looking at is that issue," said Stiassny.

"There are other things that we think are more pressing."

When asked if the public would be told about any timeframe or deadline for a decision to be made, Stiassny said the board would "think about that".

One of the pressing decisions for the board is the appointment of a chief executive for the newly merged organisation.

Vector chief executive Patrick Strange, despite leading the company in its successful takeover bid for UnitedNetworks, has been asked to apply for his own job.

His main rival is former UnitedNetworks chief executive Dan Warnock.