NZ stocks: Trains and trees on double-bill agenda

By PAM GRAHAM

The annual meeting season has a double bill this Friday but shareholders cannot attend both because the Tranz Rail and Fletcher Challenge Forests gatherings are at the same time in different parts of Auckland.

One short speech and a "We are still getting to know the business" reply to questions is expected from Tranz Rail owner Toll Holdings.

The meeting at the Spencer on Byron Hotel in Takapuna will consider the re-election of directors David Jackson, Austin Perrin, Mark Rowsthorn and John Loughlin.

A vote will also be taken on continuing with KPMG as auditor and "any other business that may properly be bought before this meeting".

Toll chief executive Paul Little is not on the board.

The meeting was expected to be small and low-key, said Tranz Rail spokeswoman Sue Foley.

Toll wanted total control and a delisting from the NZX but has just 84.2 per cent ownership. Its $1.10 a share offer, to close next Monday, is below the latest share price of $1.51.

The flow of information from Tranz Rail to investors has slowed to a trickle. The investor relations section of its website has little on it beyond the phone number of Toll chief financial officer Neil Chatfield, and the company is abandoning quarterly reporting.

Tranz Rail must also hold a special meeting to sell the tracks to the Government. December 8 was the first day the deal could have been executed.

Chatfield said the relationship with the Government was getting stronger with every meeting but the parties were taking time to get the new structure right.

Across town at Eden Park, Fletcher Forests' shareholders will receive an update on the sale of the company's forests. The sale itself will be considered by a special meeting early next year.

Shareholders are expected to raise the issue of a $17 million break fee payable to the Campbell Group if the trees are sold to rival bidder Kiwi Forests Group. Shareholders Association chairman Bruce Sheppard plans to attend, but without his customary theatrical props.

Directors Luke Moriarty and Rodger Fisher are up for re-election.

The other big event this week is a Budget Policy Statement and December Economic and Fiscal Update from the Government on Thursday.

Tru-Test's meeting on December 23 is the last for the year. Disgruntled institutional shareholders will be in attendance and Sheppard is also considering going.