Perry Corp behind surprise Rubicon crossing

By NZPA

Tuesday 28th January 2003

United States investor Perry Corp has increased its stake in forestry and biotech firm Rubicon to 19.81 percent.

Perry said today in a substantial shareholder notice to the New Zealand Stock Exchange it upped its stake from the previous 16.3 percent for a total of 9.70 million shares worth $7.35 million.

The purchases were between December 24 and today.

Brokerage First NZ Capital traded six million shares, or 2 percent of the company, at 76 cents each today, taking the market by surprise and sparking speculation either Guinness Peat Group or its rival Perry Corporation could be involved.

Shares in Rubicon, which owns 17.6 percent of Fletcher Challenge Forests, closed 3c firmer at 74c.

Corporate raider GPG, whose partial takeover of Rubicon failed last year, took multibillion-dollar United States hedge fund Perry Corp to court in December claiming that Perry attempted to hide its 16 percent Rubicon holding in an equity swap.

During the case, GPG said that when it lifted its stake in Rubicon to 19.9 percent in a lightning raid in July, it had no idea that Perry had a 16 percent stake in the company.

Perry said it had an "economic interest" of that size but did not own that quantity of shares.

GPG wants a forfeiture and/or sale -- at arm's length -- of shares by Perry to reduce its holding to the level that it had publicly disclosed, 4.895 percent.

Justice Judith Potter reserved her decision in the case.

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