Wallace injunction refused

Press, 9 May 1984, Page 36

Wallace injunction refused

PA Auckland A High Court judge has suggested that the Overseas Investment Commission told third parties that it had blocked a New Zealand investment by an Australian company before the applicant was informed. Mr Justice Prichard was ruling on an application by three Auckland executives, Messrs H. K. Baigent, G. D.

Bowkett, and J. A. Jamieson, for an interim injunction preventing D. McL. Wallace, Ltd, selling its 50 per cent stake in Industrial Waste Collections, Ltd, to TNT, an Australian company. The plaintiffs hold about 25 per cent of D. McL. Wallace and earlier this year received statutory approval to raise that stake to 51 per cent. The judgment said that on March 27, the secretary of the 0.1. C., Mr Bruce Rampton, told the plaintiff’s solicitors that the application by TNT had been turned down because it conflicted with Government policy. (The New Zealand Government last year froze Australian investment in New Zealand because it felt New Zealand companies had limited opportunities to expand by acquisition in the Australian market). Judge Prichard said: “It seems remarkable that (the 0.1. C.) decision was conveyed to the plaintiffs before it was notified to TNT.” Mr Rampton would make no comment about the judge’s remarks. Judge Prichard dismissed the application for an injunction. An executive director of the group’s New Zealand subsidiary, TNT Transport (NZ) Ltd, (Mr Bill Cadwalider) said “The (0.1. C. decision is not necessarily the final decision — that rests with the (Minister of Finance, Sir Robert Muldoon)”. However, he was not willing to say whether representations had been made to Sir Robert directly: “As of today, we are not negotiating with anybody ... we are keeping our position under review, though.”