Rubicon nearly at takeover line

By PAUL PANCKHURST

Investment company Rubicon paid $14.4 million for another 2.3 per cent of Fletcher Challenge Forests to yesterday hit 19.9 per cent - snuggled up to the borderline for a takeover.

In an extra surprise, comments from Guinness Peat Group's New Zealand head, Tony Gibbs, suggested a degree of cosying up between previously warring GPG and Rubicon.

Market talk tipped the purchase as a signal: Rubicon wanted faster progress from Fletcher Forests in tackling the gap between the company's share price and asset value.

Chief executive Luke Moriarty was not so explicit, but said: "As the major shareholder, Rubicon is particularly keen to see the value gap closed."

Rubicon's biggest shareholder is GPG.

Gibbs said GPG was "comfortable" with Rubicon's move and "supportive".

GPG? Supportive?

Quizzed, Gibbs acknowledged the novelty of agreeing after previously attacking the company over issues including Moriarty's remuneration.

Rubicon bought $11.2 million of the shares yesterday, and $3.2 million between February 10 and 17.

The company already has two seats on the Fletcher Forests board.