Fletcher chief out of chair for vote

Fletcher Forests chairman Sir Dryden Spring will not chair next week's special shareholders meeting to vote on the Central North Island Forests deal.

Sir Dryden said yesterday that it was important that shareholders who gave proxy votes to the meeting chairman had confidence in the way they were exercised.

"In light of legal uncertainty, I suggested to the board that I not chair the meeting, and they have accepted that recommendation," he said.

The board will elect Fletcher Forests director Michael Walls to chair the meeting, and he will also accept proxy votes from holders of the company's American shares.

The New Zealand Stock Exchange has pointed to legal uncertainty about Sir Dryden's status in voting any proxies because he is also a director at the National Bank, lender to the forestry partnership which is currently in receivership. The bank is also a proposed lender to Fletcher Forests in the new deal.

Fletcher Forests' second largest shareholder, American company Xylem Investments, approached the NZSE with concerns about Sir Dryden chairing the meeting.

Xylem, Guinness Peat Group and the New Zealand Shareholders' Association all oppose Fletcher's $1.4 billion deal to purchase the forestry estate from the receivers, and take Citic as a key shareholder in exchange for cash.

Xylem will today seek orders from the High Court at Auckland to prevent Fletcher Forests' largest shareholder, Rubicon, from voting on the transaction.

Fletcher Forests shares closed today up 1c at 23c, while Rubicon was up 1c at 71c.

- NZPA