Ariadne Australia close to settling control of firm

Press, 23 January 1988, Page 31

Ariadne Australia close to settling control of firm

PA Brisbane Ariadne Australia, Ltd, said it was close to finalising arrangements which were likely to settle control of the embatttled investment company. The Ariadne chairman, Bruce Judge, said in a statement that a syndicate of major investors was forming a proposal to buy Judge Corp’s 19 per cent stake in Ariadne. And Ariadne was also holding talks with a U.S. businessman to take on the role of chief executive officer at Ariadne, Mr Judge said. Mr Judge’s statement followed a court ruling on Thursday to stop Ariadne extending its $l2O million rights issue. The N.S.W. Supreme Court has upheld action brought by the issue’s underwriter, Pembroke Securities, Ltd, to stop Ariadne extending the issue by six weeks to February 26. Mr Judge said he was disappointed by the court’s decision because the extension “was to enable the company to inform shareholders of a number of issues relevant to them.”

He said these issues, which include the ownership of Judge Corp’s 19 per cent stake, were likely to be resolved in the next two weeks.

He said the syndicate of major investors was currently “documenting a proposal to purchase Judge Corp’s stake in Ariadne.”

“Arrangements are in the course of being concluded for the rights attached to those shares to be taken up. “The syndicate will include companies which will provide considerable benefits to Ariadne and participation has been offered to Essington Developments, Ltd, and EIE Development Co., Ltd,” he said.

The two companies were involved in Oxted Pty, Ltd, a consortium led by Kerry Packer, which last month pulled out of a conditional agreement to buy the 19 per cent stake. Oxted is 50 per cent owned by EIE, a Japanese property developer, and 25 per cent each by Mr Packer’s Consolidated Press and Essington, Ltd. Ariadne was also negotiating with Eugene Cafi-

ero, the chief executive officer of KDI Corporation, and formerly president and chief operating officer of U.S. car giant, Chrysler Corporation.

“In view of the close shareholding ties between the two companies, it is intended that Mr Cafiero would retain chief executive officer position in both companies,” Mr Judge said.

He said discussions have been held with Mr Cafiero over several weeks.

In addition, Ariadne was negotiating a revision of its partnership in the savings and loan industry “which will have the effect of greatly increasing Ariadne’s returns and percentage of ownership and reduce considerably the capital outlay,” he said.

Ariadne’s financial services arm, in a joint venture with a group headed by the former U.S. Treasury Secretary, William Simon, recently acquired two savings and loan associations in the U.S.

Mr Simon, also an Ariadne director, was earlier believed to be negotiating to buy the 19 per cent stake.