Heavyweight bidder refuses to reveal his hand

By PAULA OLIVER

Intrigue surrounded the Government's spectrum auction yesterday when a little-known bidder made his mark and a director of the Pacific Retail Group, Nick Gordon, entered the fray.

Though the much hyped third-generation (3G) spectrum again failed to fire, most of the interest centred on the arrival of heavyweight Mr Gordon, who is closely linked to high-flying businessman Eric Watson.

Mr Gordon registered to bid under the company name of Gordon Marketing and made several $20,000 bids for second-generation (2G) spectrum in the morning round.

The more competitive 2G auction saw his bids swallowed up in the afternoon, but Mr Gordon refused to comment on his intentions.

He hinted that a clearer picture might emerge in a couple of days.

Wellington businessman John Yaldwyn also created a stir by registering first-up bids of $75,000 for 2G spectrum.

Mr Yaldwyn is a director and the major shareholder of 4RF Communications, a company developing a wireless "wall-jack" that will enable people in remote areas to have telephones without needing cables.

He worked for Marine Air Systems (MAS) Technology for 14 years before it was taken over and listed on the Nasdaq as Digital Microwave in 1998.

"It's really too early to comment on my intentions, but if you look at the products we are developing within 4RF Communications then you can draw your own conclusions on what we might do," he said last night. "Strategy is an important thing in an auction, and I'm not prepared to give anything away in the middle of it."

Mr Yaldwyn's $75,000 bids lifted the price of 2G spectrum further, with many lots now sitting above $70,000.

The bids now total $35.5 million, still a far cry from the Government's hopeful predictions of several hundred million dollars.

Jump Capital, backed by Fay, Richwhite and the Todd family, has yet to show its hand and media giant INL is also biding its time. Ihug, whose large bids for 2G spectrum gave the auction some life on Friday, did not follow up the bids yesterday.

TVNZ-owned Broadcast Communications made bids for several lots of 2G spectrum but were outbid by Telstra Saturn.

Another player, Nathan Smith, also registered for the auction yesterday, but did not make a bid.

Mr Yaldwyn said it was quite clear there were two auctions going on instead of one - and the 2G race was just beginning to hot up.