The week
began with part 2 of a bitter
dispute between listed firms Dorchester Pacific and Viking
Capital. Late last week the often-controversial Viking chief,
Brent King, lashed out at the company he ran until early in
2006.
Friday, September 28th 2007, 3:13PM
King said his current firm, which has a 7% stake in Dorchester,
"have lost confidence in this company". While
King was having a go at some of Dorchester's business
decisions the comments also took on a personal note as he
slammed the group's directors for "threats"
against former employees.
"We are fed up with this, my comment is 'put up or shut
up'," King said.
On Monday Barry Graham, Dorchester chair, put up. In a letter
to the NZX Graham called King's comments "contradictory,
inaccurate and extraordinary".
"We note Viking's decision to sell down their holding
of Dorchester and welcome this move," Graham said.
That cleared the air.
Propertyfinance
Group (PFG) also attempted to provide some clarity this
week around its troubled subsidiary, the in-receivership Propertyfinance
Securities (PFS). PFG shares opened for trade again on the
NZAX, almost a month to the day after a trading halt due to
PFS' woes.
PFG chair, Barry Sundstrum, offered some hope to investors
claiming the loan book of its finance company subsidiary was
in good shape despite the receivership.
"The on-going solvency of PFG is heavily dependent on
the successful rescheduling of its liabilities together with
the sale of fixed assets and/or placement of fresh capital,"
he said.
PFG's first challenge will be to meet a $67,000 interest
payment on its preference shares due on Sunday - the firm
is 'seeking funding'.
For another listed parent of a fallen finance company, however,
the news was the opposite to PFG. VTL, owner of the failed
Nathan's finance company, confirmed on Wednesday that
its shares would "remain suspended until further notice".
Away from
the finance company sector, but still mired in NZX news, Good
Returns revealed on Thursday that FundSource chief, Binu
Paul, has resigned. The NZX, which bought FundSource a
year ago, will also begin relocating the operation from Auckland
to Wellington next week.
Still in Wellington, the office of Lianne Dalziel, Commerce
Minister, told Good Returns that despite an impassioned
argument from joint industry bodies, insurance advisers will
still have to disclose
commissions under proposed regulation - the beginnings,
perhaps, of another bitter dispute.
It seems
that homeloan rates are continuing to move in the right direction
for anyone seeking a mortgage at the moment, more details
can be found in the Mortgage
Centre.
The People
section has been busy this week, with The Investment Store,
ASB Group Investments and Macquarie Private Wealth all adding
to their teams.
Kiwi
Safer How to keep your money
safe in KiwSaver by Gareth Morgan This book is designed to help you make a
careful, considered decision about investing in KiwiSaver.
There's no such thing as an easy investment decision,
and like all other such investments, KiwiSaver carries
an element of risk. KiwiSafer aims to inform you of
the risks. [more]
Get your own copy
of the Weekly Wrap delivered directly to your inbox each Friday. Click
here to join the mailing list.
