Inside trader gives up his fight for secrecy

By SIMON HENDERY

A prominent Auckland businessman who admitted making $40,000 by manipulating the price of Fletcher Paper shares has given up his battle to keep his identity secret.

Paul Hyslop, the executive director of Wilson Neill, yesterday abandoned a High Court application banning the Herald from naming him as the man at the centre of an insider-trading investigation.

Mr Hyslop's lawyer, Stuart Grieve, QC, told the court his client was dropping the action because other media were also planning to publish his name.

Justice Robert Fisher ordered Mr Hyslop to pay the Herald $6000 for its legal expenses, saying his attempt to silence the paper "was always going to be a difficult case for the plaintiff to argue."

Mr Hyslop had claimed publishing his name would break a secrecy agreement entered into last year when he handed Business Herald reporter Mark Reynolds leaked details of Fletcher Challenge's restructuring plans.

Mr Hyslop bought shares in the company before distributing the document, and profited from a share price increase after details of the plans were published.

In court on Wednesday, Reynolds, now a public affairs consultant, said he never agreed not to name Mr Hyslop.

Justice Fisher said yesterday that he had "concluded that the evidence of Mr Reynolds is to be preferred to that of the plaintiff."

"It does seem to me clear that the plaintiff was less than candid in his dealings with the Herald, in so far as his purpose for seeking publicity for that document was concerned."

Mr Hyslop and two others who handled the document were interviewed by the Serious Fraud Office.

The Securities Commission also investigated the affair, but no criminal charges were laid. The commission has used the case to suggest that New Zealand's insider trading laws need to be rewritten to match those of other countries, including the United States and Australia.

Mr Hyslop yesterday resigned as a director of Wilson Neill, but remains a significant shareholder and has indicated he will seek re-election to the board at the company's next annual meeting.

Wilson Neill owns the Cobb & Co restaurant chain and Parnell restaurant Iguacu, as well as a fledgling technology business.