Shareholder furious with bank's move on Feltex

A shareholder activist who says he represents a group of Feltex shareholders has accused the carpet manufacturer's banker of treating the New Zealand icon as a second-class citizen.

Feltex has been placed into receivership this morning.

Tony Gavigan has today accused ANZ of putting Feltex's interests second to its international banker client, Credit Suisse First Boston, which floated Feltex two years ago.

"ANZ has always been CS First Boston's bank and their loyalty to Feltex has been second to that," said Mr Gavigan.

He also called for shareholders to contact him so enough could force a company meeting and sack the board "which has gone AWOL again".

"You have to ask where's the board? They should be down at the High Court at the moment seeking an injunction," said Mr Gavigan, who led a group of shareholders in a nine-year, successful legal battle over Fletcher Challenge's takeover of Southern Petroleum.

He promised legal action against ANZ and Feltex promoters CS First Boston, who raised $254 million from the public float two years ago. The company was sold to the public by Credit Suisse First Boston Asian Merchant Partners, an associate of CS First Boston.

"This is not the end of the situation, in fact it's the beginning," said Mr Gavigan.

He said there would be something in it for shareholders, "but it will be at the High Court, not at the stock exchange".

Mr Gavigan predicted Feltex would now be broken up with rival and former suitor Godfrey Hirst picking out the eyes.

"I don't think you have to be Einstein to work out that what the Turners are saying is the way it's going to go. Godrey Hirst are going to pick off the bits that they want and the receiver is going to create a firebreak with the liabilities."

He said Feltex supplier creditors were likely to be out of pocket.

Security guards had been stationed at the Feltex factories to stop suppliers getting their goods back.

It's been reported that there is a group of angry demonstrators outside the ANZ branch in Otahuhu this morning, protesting the bank's action over Feltex.

Reports say around 50 Progressive Enterprises employees have joined the protest, to show solidarity with their colleagues in the textile industry.

- NZPA