Forum Archive Index - March 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

 

Greg,

 

You are quite right: the word strategic implies that the holding can be used to block any take-over or induce the offerer to pay a high price for it.

New takeover rules will come into effect on July 1, but it will remain a strategic stake!

 

One reason for some former Fletcher executives to be on the Board, is connected with this holding.

 

Page 45 of the prospectus lists the Directors:

 

Dr J Villiger, Luke Moriarty, Bill Hasler and Dr Jilly Evans have excellent international connections, financial and bio-tech backgrounds.

 

The CEO, mr. Moriarty has extensive experience in international business valuation and development.

 

Of the six directors, two are former Fletcher directors.

Some people object to them being on the Board- some critics have never read the prospectus and thus have not seen the full line-up of the Board.

 

The company is not a large one and the composition of the Board prevents any Director from having too much influence.

 

RBC will be operating in the knowledge industry and as it is financed properly, will have access to some underrated and cheaper international investments which are now becoming available.

 

The composition of the Board of Directors reflects those objectives!

 

Gerry