KEY POINTS:
Transpacific
Australian waste management company Transpacific Industries has applied for approval to buy part of EnviroWaste Services in NZ, having previously been told it could not buy all of EnviroWaste's South Island assets. The Commerce Commission said Transpacific had made two applications concerning the businesses and assets of EnviroWaste, a wholly owned subsidiary of Australian private equity provider Ironbridge Capital. These involved EnviroWaste's solid waste collection businesses in Blenheim and Nelson and its solid waste businesses in Oamaru and Timaru. TPI has been of interest to NZ investors ever since it swallowed up Waste Management, thus depriving NZ investors of a recession-proof investment. Those who switched to TPI as a means of investing indirectly in Waste Management have been well rewarded as TPI has been a stunning growth story in itself. It is not risk-free, though, as much of the growth is funded through a huge pile of debt.
Telecom
Telecom Corporation chief financial officer Marko Bogoievski has resigned, after being overlooked for the top job. Bogoievski has been with Telecom more than 7 1/2 years and was considered front-runner to replace former chief Theresa Gattung. In June, Telecom appointed Paul Reynolds, the chief executive of BT Wholesale. Unsuccessful companies rarely appoint from within because staff tend to be tainted by old mistakes. And Telecom made some huge errors. Reynolds is widely approved of, given his experience. He will have to deal with a Telecom where parts are thriving, but growth is slowing in areas where it faces increased competition. Telecom retains compelling competitive power and even the expected reduction in its dividend should deliver a good yield.
* Views expressed in this article are those of IRG, not the Weekend Herald.
