Forests CEO jumps out of hot seat

By PAUL PANCKHURST

Seven weeks after the sinking of Fletcher Challenge Forests' plan to buy $1.4 billion of prime New Zealand forestry assets, chief executive Terry McFadgen yesterday announced his retirement at the age of 55.

Commentators had expected heads to roll after shareholders on August 13 killed off the plan to buy the Central North Island Forest Partnership's assets and take the company in a new "global direction".

Asked if yesterday's announcement was connected with the lost vote, McFadgen said: "No, it's got nothing to do with it."

He will retire from Fletcher Forests in April - two-and-a-half years after he took the job.

Some industry observers were not surprised - saying it was well known that his role was a transitional one.

McFadgen said that two-and-a-half years had always been the term of his contract.

He said his pending retirement had been announced publicly now because the search over the next six months for a replacement would have sparked rumours and speculation.

Trained as a lawyer, McFadgen joined the Fletcher Challenge Group in 1988 and became chief executive of Fletcher Challenge Building in 1995, before jumping across to the forestry company.

Asked about his plans, McFadgen said he would definitely stay in the business world, but wanted a less intense role - and one that required less than six-and-a-half working days a week.

The Herald reminded McFadgen of a comment he made in 2000, when he was questioned about taking over the "hot seat" at Fletcher Forests.

He said then: "But most seats are hot from time to time. They cool off."

It was not so in this case - with the arguments and counter-arguments over the planned central North Island deal generating a forest fire of emotion and debate. McFadgen acknowledged yesterday that things had never cooled down.

"But," he said, "look around New Zealand corporates at the moment."

He named the likes of Tranz Rail, Carter Holt Harvey, Air New Zealand.

"There aren't too many cool seats at the moment."

The announcement of McFadgen's retirement came as speculation swirled around one of the other key figures in the saga over the future of the Central North Island Forest.

The latest rumour is that Guinness Peat Group is talking with the receivers of the Central North Island Forest Partnership - and could take part in a bid for the partnership's assets.

Asked about the speculation, GPG director Tony Gibbs said: "I can't comment on that at this stage."

GPG on Friday made a renewed takeover offer for Fletcher Forests' biggest shareholder, Rubicon.