Heads may roll at new-look Wilson Neill

Friday 9th March 2001

By Nicholas Bryant

New Wilson Neill Corporation managing director Tim Connell is considering a board cleanout in an attempt to rehabilitate the company's damaged image.

Four past and present Wilson Neill directors are facing charges laid by the Companies Office and one former director, Paul Hyslop, is also being pursued by Fletcher Challenge for alleged insider trading.

"Obviously there's been bad publicity and people are understandably cautious about being involved in the stock," Mr Connell said. "The whole board structure is something I need to look at over the next week or two ... I will address those issues during that time," Mr Connell said.

At a special shareholders' meeting in Dunedin on Tuesday Mr Connell effectively gained control of Wilson Neill and won the right to have two nominees of his choice appointed to the board.

The market is keen to see if that right will result in the emergence of one of Eric Watson's people in Wilson Neill. Mr Watson owns 10% of IT Media through his majority holding in Pacific Retail Group. Mr Connell said he had not decided who to appoint. "Eric and I are just mates ... I run my company, not him," he said.

Two board members whose days at Wilson Neill could be numbered are its chairman, Trevor Mason, and director Diane Giles, both of whom face charges laid by the Companies Office relating to the late filing of share issues.

The other two ex-Wilson Neill board members, Malcolm Johnson and Mr Hyslop, also face charges.

Mr Connell took the reins at the ailing company when shareholders passed resolutions which will effectively see the end of Wilson Neill's 140-year association with Dunedin.

An Auckland-based publishing entrepreneur, Mr Connell has engineered a near-reverse takeover of the company, receiving 250 million 6c Wilson Neill shares and 30% ownership for the privilege of backing his company IT Media into Wilson Neill.

Mr Connell said there would be strong synergies between his internet, magazine and television lifestyle and business content and the ISP provision of Wilson Neill's subsidiary Radionet. "We're looking to customise daily emails and bulletin boards to individuals, be it for golf, fishing, rugby or business updates, and we'll be charging people for it," he said.

The share issue to Mr Connell makes Wilson Neill one of the most liquid equities traded in the country, with about 800 million shares on issue. Those shares are trading at about 3.5c on the secondary board of unlisted securities. An official Stock Exchange listing was a goal, Mr Connell said.

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