Tarty’ finds no note of Rakiura deal

Press, 29 January 1986, Page 8

Tarty’ finds no note of Rakiura deal

PA Auckland A mystery “third party” has told the Reserve Bank it has no record of any commitment to help Rakiura Holdings pay for its abortive $lOO million Government stock tender bid.

Reports have suggested that Rakiura’s Mr Brian Alexander told the bank by letter that the bid was made on behalf of a principal, the “Auckland Star” said yesterday. It was also suggested he named the institution concerned and explained he made the deal with one of its officers, who had since left.

A request from the “Auckland Star” for a copy of this letter, made under the Official In-

formation Act, has been refused.

However, the bank says “... the letter sets out certain claims that Rakiura had made oral funding arrangements with a third party which fell through after (Rakiura’s) tender had been accepted.

“The bank has had discussions with the third party which claims that it had no record of any commitment to Rakiura. In view of that fact, the bank is not prepared to release the letter.”

The letter’s reference to "funding arrangements” rather than a deal between an agent and principal, may mean Rakiura was intending to buy the stock itself.-

While the third party

may have “no record of any commitment to Rakiura” this does not necessarily mean no deal was ever made. Mr Alexander’s letter talked of “oral funding arrangements.” Besides wanting to protect the privacy of the third party the bank gave two other reasons for declining the request by the “Star” for a copy of the letter:. • ■

• So as not to prejudice the future supply of similar information from tender participants.

• So as not to inhibit the bank’s commercial activities. A bank official said the Reserve Bank was still looking at what legal action it might take over the Rakiura affair.