By PETER GRIFFIN
Lawyers representing millionaire businessman Stephen Tindall yesterday rubbished claims he was involved in a conspiracy to oust inventor Peter Witehira from his stake in technology venture Deep Video Imaging.
Witehira sold a 34.6 per cent share in the company he helped set up to IT Capital in May
2000, but claims he was duped into selling by parties who wanted him out of DVI.
Also in Witehira's sights is former Technology New Zealand subcommittee member and businessman Rick Christie, who is alleged to have stalled approving a $506,000 grant to DVI so that Witehira's company PowerBeat would feel pressure to sell out.
An interlocutory hearing held over the past three days has focused on a collection of emails and letters that each party has chosen to interpret differently.
While there seems to be acknowledgement that Technology NZ was wary of putting public money into DVI without safeguards surrounding PowerBeat's involvement, there is nothing documented to show the Government body required PowerBeat to sell out entirely.
Tindall's lawyer Bruce Stewart, QC, said Witehira knew that the Government was reviewing DVI's failed application for a business development grant before he sold his shares to IT Capital. The money was subsequently granted.
Stewart said that Tindall could have delayed proceedings indefinitely by refusing to give financial assurances necessary for the grant to be issued.
"He [Tindall] could have waited six months or a year to put the application in again. It would have to be the stupidest conspiracy ever dreamed up," said Stewart.
In correspondence, Tindall told Christie that PowerBeat might have to "dilute" its shareholding in DVI if it could not raise further investment in the company, a situation that could be offset by the sale to Tindall of PowerBeat's interest in another investment, Teleshopping. There was no demand for a complete sell-out.
The Teleshopper technology, a form of e-commerce whereby a consumer could order goods from electronic or print media with the click of a button on a key-ring device, was also invented by Witehira.
In correspondence, Witehira said he was "not adverse" to selling out of either DVI or his other investment U-Click.
Justice Peter Salmon reserved his decision on whether the case will go to trial.
