Brierley defence

Press, 24 August 1988, Page 39

Brierley defence

PA Wellington Sir Ron Brierley has defended his position as chairman of the Bank of New Zealand, when Brierley Investments is a potential purchaser of the Government’s shares in the bank, in a letter to Wellington’s “Dominion” newspaper yesterday.

“It is not the bank which is selling shares,” he pointed out.

“It is the Government of New Zealand in its capacity as the major shareholder which is the vendor, and the selling process is being independently conducted on its behalf by its New York-based adviser, First Boston Corp.” Sir Ron was replying to a “Dominion” editorial . which claimed he was “the head of the selling organisation.”

Merchant bank First Boston Corp selected Brierley Investments as an obvious potential purchaser in the ordinary course of its marketing endeavours, he said.

“If there was any perceived conflict it would be quite simple for the Government as vendor to exclude Brierley Investments and other organisations with which bank directors are associated, as buyers of the shares.

“There is, of course, no logical or commercial reason why it wishes to do so. Equally, there is no conflict in my role as chairman of the Bank of New Zealand simply because the Government has decided to sell its shares.”