News Round Up
Dorchester fights off Viking attack, NZ slows but rate cut not on agenda and AMP puts Dunn in charge
Monday, September 24th 2007, 11:40AM
Dorchester fights off Viking attackBarry Graham, chair of Dorchester Pacific, has hit back at criticism of the group at last week's Viking Capital annual meeting.
In a statement to the NZX this morning, Graham said comments made at the Viking meeting were "contradictory, inaccurate and extraordinary".
"The Board has accepted management proposals for the future direction of the company in a more challenging finance market and economic environment, and these have been endorsed by major shareholders," he said.
"We note Viking's decision to sell down their holding of Dorchester and welcome this move.
At last week's meeting Dorchester came in for heavy criticism from Viking chief, Brent King (who formerly worked at Dorchester), including this complaint about Dorchester's decision to sell Direct Broking:
"This is classic - The (Dorchester) CEO either doesn't do his homework or he openly criticises his board. Either way it was another PR mistake," King said.
"This is why we have lost confidence in this company the quality of decision making and strategy is below acceptable levels. Dorchester has lost its shareholders over $40million dollars in last 18 months You will note that the Directors of Dorchester have made a number of threats and claims over the time about former employees.
"We are fed up with this, my comment is 'put up or shut up'".
NZ slows but rate cut not on agenda
New Zealand interest rates will remain on hold for at least a year, according to a Bloomberg survey of 11 economists published this morning.
Bloomberg said with economic growth picked to have slowed by as much as 0.5% in the June quarter, Reserve Bank Governor, Allan Bollard, has probably done enough to curb inflation with the increase to the benchmark interest rate in July to 8.25%.
"Bollard will leave interest rates unchanged this year, according to all economists surveyed by Bloomberg News. Just four predict a cut before July next year," the Bloomberg report said.
According to the Bloomberg survey of economists, New Zealand's gross domestic product increased 0.5% in the June quarter compared to an increase of 1% in the first quarter. ``Household spending has been unable to sustain its frenetic pace, weighed down by rate increases, a slowing housing market and moderating immigration,'' said Daniel Wills, ASB Bank economist. ``Exports remained under pressure from the high New Zealand dollar.''
AMP puts Dunn in charge
Last week AMP revealed it would promote Craig Dunn, head of financial services, to the top job, replacing the departing Andrew Mohl.
Mohl, who has held the position of AMP CEO for five years, will finish up at the end of this year with Dunn to officially take the reins on January 1, 2008.
Dunn will be on a base salary of A$1.4 million along with a short-term incentive bonus of between 0-200% of salary as well as other long-term incentives.
He has been with AMP for seven years, the last five of which have been in his current role.
Dunn appointment was expected but it is understood a number of external and internal candidates were considered for the role.
"As head of AMP's largest business, Craig Dunn has played a vital role in the turnaround of AMP," Mohl said.
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