Bridgecorp increases its stake in rival Dorchester

Bridgecorp - the company owned by former 1980s high-flyer Rod Petricevic - has increased its stake in rival investment company Dorchester.

The company disclosed yesterday that it had lifted its stake from 14.83 per cent to 18.62 per cent.

Bridgecorp bought a 19.5 per cent stake in August 2004 but was forced to sell 5 per cent when the Takeovers Panel decided there was a problem with a "lock-up" agreement made with Dorchester's Brent King and other shareholders.

The parties had an agreement that King and one of his companies, Snowden Peak Investments, would give Bridgecorp an option to buy a further 5.05 per cent of the company before June 30 next year.

The panel ruled the agreement made the parties associates - pushing them jointly above the 20 per cent barrier imposed by the Takeovers Code, which requires investors who take their stake above 20 per cent to make a full or partial takeover.

King insisted that the parties had acted appropriately.