Tower Corporation boss James Boonzaier has labelled Guinness Peat Group's (GPG) reasoning for taking the Tower demutualisation scheme to the Privy Council as unbelievable.
Tower Corporation boss James Boonzaier has labelled Guinness Peat Group's (GPG) reasoning for taking the Tower demutualisation scheme to the Privy Council as unbelievable.
GPG chairman Sir Ron Brierley has been reported as saying that his company was taking Tower's proposal to the Privy Council because there were important legal and commercial issues related to demutualisation at stake.
He says there is little in it for GPG's shareholders, and the decision is not a spoiling tactic.
"But we area a sort of well-known public benefactor," Sir Ron says.
Boonzaier replies: "The comment reportedly made by Sir Ron Brierley on behalf of GPG that his company was taking Tower's demutualisation scheme to the Privy Council because ...GPG was a sort of well-known public benefactor was unbelievable, especially given their well-known history as a corporate raider."
"GPG failed to convince the High Court and the Court of Appeal on the merits of its proposal (to merger Tower with GPG's 51 per cent owned Tyndall Australia) and now Sir Ron and the GPG board want to waste more of GPG's shareholders' funds on going to the Privy Council."
Boonzaier says GPG shareholders should be asking questions of their board.
He says Tower has no option but to resist the legal action.
Tower hopes that matter will be dealt with swiftly so it doesn't delay its plans to demutualise and list on the Stock Exchange in the third quarter of 1999.
The Appeal Court has yet to grant GPG leave to take its case to the Privy Council.
Currently GPG is in the process of selling its GPG stake to Royal & SunAlliance in Australia.
Tower Corporation boss James Boonzaier has labelled Guinness Peat Group's (GPG) reasoning for taking the Tower demutualisation scheme to the Privy Council as unbelievable.