Meat firms in tit-for-tat pleas to High Court

By PHILIPPA STEVENSON

PPCS is seeking its own judgment on the legality of its shareholding in Richmond from the High Court at Auckland, just as Richmond is after one from the court at Dunedin.

The South Island meat company filed documents in Auckland on Friday, only days after Hastings-based Richmond did the same in the south.

PPCS chairman Jim Pringle said his company's move would conclusively resolve the central issue underlying Richmond's legal action.

"It is clear a small group of shareholders is causing Richmond to take legal action - at considerable cost to Richmond - which needs to be brought to a close," he said.

PPCS chief operating officer Keith Cooper said PPCS' action would focus on whether regaining a shareholding in Richmond last year was legal after the company was declared a defaulter in July 2000 and was forced to divest its then 36 per cent stake in Richmond.

The Richmond action in Dunedin sought to go back to 1996, he said.

The tit-for-tat court proceedings are the latest event in a four-year stoush between the two big meat companies over PPCS' repeated attempts to get a stake in Richmond.

Hawkes Bay farmer shareholders of Richmond opposed to the southern incursion have alleged that PPCS warehoused the shares it had to divest in 2000 with the help of investment company Active Equities, whose Hawkes Bay Meats owns around 36 per cent of Richmond.

PPCS now has 34 per cent of Richmond, with an option to buy Hawkes Bay Meats' remaining shares before September next year. That would give PPCS more than 50 per cent and effective control of the northern company.