Hyslop file may be given to Fletcher

By SIMON HENDERY

The Serious Fraud Office says it will consider passing details of its investigation into the Paul Hyslop affair to Fletcher Challenge.

The company wants to see the SFO's file on the use of Fletcher Challenge inside information by Mr Hyslop and two relations so it can consider taking legal action against the trio.

SFO director David Bradshaw said that while his office's discretion to release such information "needs to be exercised extremely carefully," he would be happy to consider the request.

"At this stage, without looking at all the material again, I could not say what the outcome would be, nor whether there would be any special conditions imposed if I was to release any information."

Last year, the SFO investigated Mr Hyslop, his sister-in-law Liz Corby, and his brother-in-law Keith Stewart after Mrs Corby faxed an internal Fletcher Challenge document to Mr Stewart.

Mr Hyslop, who resigned as executive director of Wilson Neill after his role in the affair was revealed, also copied the document which gave notice of planned company restructuring.

He, Mr Stewart and Mrs Corby's husband all traded shares in the company.

After investigating, the SFO decided not to prosecute.

A Securities Commission report on the affair concluded that insider-trading laws needed to be tougher.

A Fletcher Challenge spokeswoman, Ginny Radford, said yesterday that the company would soon make a formal request for the SFO's file.

"We are having another look at our legal opportunities but I'm delighted that Mr Bradshaw is at least saying he'd be prepared to talk with us."

She said the company had still to decide whether it had enough evidence to take action, and whether that would be a civil claim under the Securities Amendment Act, or a criminal prosecution under the Crimes Act, the Companies Act or the Fair Trading Act.