Commercial ‘Windy’ war of words

Press, 6 March 1978, Page 14

Commercial ‘Windy’ war of words

By COMMERCIAL STAFF The “windy” war of words, surrounding Wellington’s Radio Windy (Capital City Radio, Ltd) and Radio Hauraki (N.Z.), Ltd, continued during last week. The statement by the chairman of Capital City (Mr C. O. Gibbs) and the deputychairman (Mr F. T. Croft) points up the two issues involved; they said that those who had invested 50c a share in 1973 had four years later shares with a net asset backing of 27c, and a share price late last year of 35c. Messrs Gibbs and Croft have issued the statement to shareholders asking for their support for a share issue to Auckland’s Radio Hauraki. “They did not mention the lack of a dividend,” said the chairman of Radio Avon, Ltd (Mr P. L. Mortlock), whose company has taken an 11.6 per cent shareholding in Capital City to help try and prevent Radio Hairaki taking a controlling interest in the Wellington company. “With that sort of record their confidence in shareholders’ support was misplaced,” Mr Mortlock said. “Messrs Gibbs and Croft also pointed up the loss of

control to Auckland interests, i They referred to a share price of 35c last year, and. the 75c paid by Radio Hauraki. “As readers of the Androcles Corporation and Lion Breweries saga will know, that kind of higher price is paid by a company getting control, he said. The New Zealand sharemarket was quiet, and on the whole, steady last week. Trading-wise the big happening was the fall on Friday of Sanford shares, which dropped 45c (more than 10 per cent) from 435 c to 390 c. Perhaps a little sanity is coming back as trading in this share is concerned. Only last year it sold for 165 c, by November it had risen to 250 c, and then it raced away. Its closing price for the year was 325 c, and when the exchanges opened after the Christmas holidays it took off again until it rose to 435 c last week. The stock exchange rightly queried the company, and the chairman of Sanford could only say that he knew of no reason for the sharp price rises, except that fishing “has become something of a glamour business.” The market may remain quick and static for some

I weeks. Normally, tax time is a difficult time for liquidity, ■ and this has reflected at times in the market. However, this year the' excessive disruption is being avoided, because of the Reserve Bank’s policy on the trading banks’ reserve ratios. | The Reserve Bank is also stabilising money movements by way of open mar-! ket operations. Waitaki N. Z. Refrig-1 erating held its annual meet-j ing during the week; as usual, it was well attended. | Many of the questions by shareholders were directed to the company's latest ven-! I tore into shipping. The chairman (Mr R. P. Thompson) reported that the directors saw a good future for Maritime Carriers — which required only a limited investment by the group anyway. The venture had an unfortunate start, he said, because of a technical hitch — beyond the com- • pany’s control — with a “tagged” tender. Mr E. J. Neilson, the managing director, said that the company was confident that the ships would soon operate to capacity, and satisfy a need in the local movement of freight.