Twist in takeover saga as PPCS appeals

By LIAM DANN PRIMARY industries editor

The long-running legal battle for control of Hawkes Bay meat company Richmond took a surreal twist last night as the supposed victor, PPCS, lodged its own appeal to the Privy Council.

The southern meat company says it was reacting to information that the Bell Group of Richmond shareholders had already lodged an appeal.

This month the Court of Appeal overturned a High Court ruling that PPCS should lose voting rights on a 35.78 per cent stake in Richmond for not properly disclosing its interests in takeover dealings done in 1999.

That gave PPCS control, with 63 per cent.

The only avenue left to Richmond and fellow Hawkes Bay shareholders the Bell Group was an appeal to the Privy Council.

Richmond opted not to appeal and a decision by the Bell Group was required by the end of today.

PPCS chief operating officer Keith Cooper said last night that his company had no choice but to appeal after receiving information that the Bell Group had lodged its appeal yesterday.

No public announcement was made by the Bell Group.

"We got faxed copies of the Bell Group's notification of appeal so immediately we cross-appealed to protect our interests," he said. "Ours is very much a response."

PPCS was also due to forfeit a 16.76 per cent stake in Richmond as part of its penalty that was not overturned in the Court of Appeal.

"We were quite prepared to forfeit the shares, mount a full takeover offer and move forward," Cooper said. "At some point people should be thinking about the staff and shareholders and suppliers."

Bell Group leader Robin Bell could not be reached for comment last night but another key shareholder in the group, Thomas Crosse, confirmed there had been no announcement of an appeal.

Crosse said he was stunned by news of the PPCS appeal.

A decision had been made by the Bell Group yesterday and an announcement would follow today. He would not say what that decision was. "What a messy thing it all is."

A Privy Council appeal could take up to 18 months to be heard. In the meantime, whether PPCS can exercise control of the company will be decided by the Court of Appeal.