Coronet, TNT battle starts to heat up

Press, 1 February 1988, Page 26

Coronet, TNT battle starts to heat up

By

MIKE OSBORNE

NZPA-AAP Sydney Relations between lan Joye’s Coronet Equities NZ, Ltd, and transport group, TNT, Ltd, soured further on Friday when TNT’s John Landerer declined to accept his appointment as a director of Cumberland Credit Corp, Ltd. TNT and Coronet are currently embroiled in a battle for control of Cumberland after TNT last week launched an AustBsc a share takeover which values the cashbox at sAustl6o million. The bid comes only two weeks after Coronet bought a controlling 20 per cent stake in Cumberland from Larry Adler’s FAI Insurances Ltd for $39.5 million. Mr Landerer said in a statement that in view of the proposed TNT takeover offer, which had not been'announced when he agreed to become a Cumberland director, he felt a conflict of interest had arisen and he would

not accept the directorship. He also said he had not “at any relevant time” disclosed to TNT any information about Coronet’s purchase of FAl’s stake in Cumberland. Sir Peter Abeles’ TNT now controls about 19.99 per cent of Cumberland, and another 15 per cent sold by Solomon Lew’s Dewvale Pty last week was believed to have gone to parties friendly to TNT. Mr Joye, chairman of Coronet and Cumberland, said he was calling a Cumberland board meeting today to initiate section 261 notices to reveal the buyer of the Dewvale parcel. He said it was traded about one minute before the TNT bid was launched.

“I find the concurrence of the events quite extraordinary,” Mr Joye said.

"Since there was no substantial shareholder notice filed today, I’ll be initiating the section 261 notices and probably be

doing the NCSC a favour.”

TNT finance director, Mr David Mortimer, said TNT did not know who had purchased the Dewvale stake. Mr Mortimer also elaborated on the TNT takeover bid for the first time since it was launched on Wednesday.

“We were shareholders who followed FAI into a cashbox and when FAI pulled out we were left as a shareholder, with control of the cashbox in the hands of someone unknown to TNT,” he said. “We re-evaluated our position and decided to bid for 100 per cent control of the company.” Meanwhile, Mr Joye has said he intends to exercise rights for about another 20 per cent in Cumberland that Coronet bought from FAI, which will make TNT’s bid for total control more difficult.

After the rights are exercised Coronet will control about 40 per cent of Cumberland.