Hawkins eyes 25pc stake

By ELLEN READ

Allan Hawkins, former head of failed Equiticorp, will control 25 to 30 per cent of Rocom if the technology minnow's planned $715,000 cash call goes ahead.

Rocom plans to issue 14.3 million new shares at 5c each in a one-for-one rights issue, underwritten by Hawkins' private companies. The proceeds will be used to repay Rocom's debt.

Hawkins, jailed for fraud in the early 1990s, has not disclosed the terms of the issue.

Rocom will seek shareholder approval for the issue at a meeting on July 20. Investors will also be asked to approve an extra issue to Hawkins' companies if they fail to get a 25 to 30 per cent stake.

Hawkins said approval would be sought from shareholders, in accordance with the Takeovers Code which prevents unauthorised stakes of between 20 and 50 per cent.

"It depends on how we present ourselves," he said last night when asked about his chances of success.

Rocom will seek an independent report on the deal to present to shareholders.