CBA Finance gets injunction

Press, 2 March 1984, Page 11

CBA Finance gets injunction

PA Auckland The public flotation of Equiticorp Holdings, Ltd, will go ahead, says the deputy chairman-elect (Mr Grant Adams) despite a court ruling restraining two of the promoters from having anything to do with the company. Mr Adams, Marac Holdings’ outgoing managing director, said; “We are going ahead in the form agreed.” In the High Court on Wednesday night Mr Justice Sinclair granted an injunction to CBA Finance Holdings, Ltd, restraining its managing director, Mr Allan Hawkins, and general manager administration, Mr Kevin Gillespie, from having any involvement with Equiticorp.

Mr Hawkins and Mr Gillespie are restrained from directly or indirectly persuading any employee of CBA Finance to quit the company.

Equiticorp is restrained from employing or receiving advice or services from any employee of CBA Finance who has resigned after February 20. It is also restrained from issuing any statement of its intention to offer shares to the public or issuing a prospectus, containing any reference to Mr Hawkins, Mr Gillespie or any employee who has quit after February 20. The injunction was granted because of allegations of breaches by Mr Hawkins and Mr Gillespie of their duties as employees of CBA Finance, Ltd.

Mr Hawkins said that he had not commented on developments so far and would not comment on the latest move.

Equiticorp is an investment bank with a paid-up capital of >35 million and will be in direct competition with CBA Finance.

Three top Marac Holdings executives—Mr Adams, the

group general manager New Zealand, Mr Jim Syme, and the group general manager international banking, Mr Miles Coney—are also joining Equiticorp.

Mr Adams said that there was no risk of Marac seeking an injunction restraining his involvement in Equiticorp. “There is absolutely no way Marac could, and 1 haven’t done anything that is in breach of my position. I am fulfilling every obligation as far as Marac is concerned.” The chairman of CBA Finance, Mr Rob Douglass, said from Sydney—CßA is 51 per cent-owned by Westpac Banking Corporation—that a Westpac merchant banker would be coming over from Sydney as a temporary replacement for Mr Hawkins.