No Judge role in BIL buy

Press, 1 September 1989, Page 17

No Judge role in BIL buy

The grabbing by Brierley Investments of a 10.2 per cent stake in his former investment vehicle, Ariadne Australia, did not mean he was mounting a comeback to Ariadne, said Mr Bruce Judge. Brierley on Wednesday paid an average of just under Austlsc a share to buy 73.9 million Ariadne shares, at total cost of about sAustll million.

The purchase was made by Brierley’s subsidiary Citizens and Graziers’ Life Assurance Company. Ariadne’s managing director, Mr Malcolm Edwards, has been frustrated in his attempts to build a controlling stake, in Ariadne by continuing difficulties with a complex sAustB4.7M deal under which Ampersand

International would have sold him an additional 19.67 per cent it is buying from FAI Insurance. Mr Edwards’ company now has about 17.5 per cent of Ariadne. The former Ariadne chairman, Mr Judge, who is a director of Ampersand, says the Brierley purchase is good. Mr Judge said he was not involved with Brierley and had no idea what its intentions towards Ariadne were.

The move, Brierley’s first in Australia since selling its subsidiary, Industrial Equity Ltd, opens up several possibilities and could have important ramifications for three New Zealand companies. Ariadne has a 36 per cent interest in the industrial and property com-

pany Renouf Corporation. In addition it owns, along with Renouf, about 26 per cent of Euro-National Corporation. Euro-National, in turn, controls 47 per cent of the property company, Kupe Group.

Commerce Commission approval was obtained by Ariadne earlier this year to take over all three of the New Zealand companies.

Mr Judge denied ever really wanting to gain control of Ariadne, saying his only concern was that nobody was looking after the interests of Ariadne shareholders. “I never had visions of getting back in before the crash. I stepped down as chief executive. I have only been interested in getting in because no one

has been looking after shareholders.” He said if someone such as Brierley was going to protect shareholders, he would not need to be involved. Some observers have said the latest move smacks of Brierley opportunism. By buying that 10 per cent of Ariadne it has blocked the chances of anybody else making a full take-over. It has also opened up the option of Brierley itself making a take-over bid.

But it seems more likely that Brierley could be using the 10 per cent stake as a bargaining chip — and the New Zealand companies with which Ariadne is associated may be what Brierley is really after.