Richmond rebels seek more input

By LIAM DANN

The Richmond shareholder group led by Hawkes Bay lawyer Robin Bell is confident it can win a Privy Council appeal in its case against southern meat company PPCS and has declared "an undaunted resolve to pursue the matter".

But in a letter to shareholders this week the group said it did not want to prejudice those shareholders hoping for a full takeover offer from PPCS.

It is now seeking their input before deciding whether to proceed.

The letter declares "a strong inclination" for a Privy Council appeal.

An Appeal Court decision this month effectively handed control of Richmond to its southern rival PPCS.

The court overturned an earlier High Court ruling that PPCS should lose voting rights on a 35.78 per cent stake in Richmond because of a failure to properly disclose its interests in takeover dealings done in 1999.

"We have seen what can happen on appeal and remain confident of the merits of the stance we took those many months ago when we initiated proceedings," the letter said.

During the appeal proceedings PPCS made an undertaking to reopen its takeover offer, at $3.11 a share, if voting rights were restored and on the condition there were no further appeals.

Bell could not be reached for comment yesterday, but he had earlier indicated that cost was not an issue as far as an appeal was concerned.

PPCS chief operating officer Keith Cooper said he hoped the Bell group would not undermine the right of other minority shareholders to take up the PPCS offer.

There was an opportunity now to bring some certainty to Richmond, its staff, suppliers and the wider community, he said.

"You've got a minority group there that may negate the opportunity for the wider shareholders to capture a premium price."