Turkey tycoon may decide Richmond ownership

Last week Matthews' New Zealand subsidiary, North Meats, spent $4.5 million for 4.3 percent of the voting rights of Richmond, appearing to make it safe from a PPCS takeover.

But Justice Young's ruling in the High Court in Christchurch earlier this week tipped the scales once again in favour of South Island-based raider PPCS.

Market analysts are waiting to see if North Meats moves to increase its stake to 19.9 percent, just below the level needed before it had to make a full takeover offer, and hope that enough shareholders, such as Graeme Lowe, hold out to stop PPCS buying a controlling stake.

North Meats has a lengthy supply association with Richmond.

Hastings sharebroker Matthew Todd said if North Meats did not move, its initial investment could become dead money unless it increased its holdings or came to an accommodation with PPCS.

Mr Todd said there was probably enough anti-PPCS feeling among Richmond shareholders for North Meats to fill an order if it made a reasonable offer.

Then it would have to hope that major shareholders like Mr Lowe, Rod Pearce of Waitotara Farm Holdings, Richmond's overseas customers and staff, held out.

"It can be done. Staff hold about 6 percent of the voting rights, Richmond overseas customers about 5 percent and Waitotara Farm Holdings 4.3 percent. People will be out there crunching the numbers," Mr Todd said.

Mr Lowe, who has 9.96 percent of the voting rights in Richmond, is prevented from increasing his stake because of an agreement not to have more than a 10 percent stake in a North Island meat processor.

North Meats chairman Norman McRae, of Invercargill, said directors met yesterday and were meeting again today as they considered the company's options.

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