IN WHAT would be a last throw of the dice, Guinness Peat Group is considering directly petitioning the Privy Council to hear its case against Perry Corporation.
Representing GPG, Raynor Asher, QC, confirmed a petition might be submitted after the Court of Appeal yesterday declined GPG conditional leave to appeal to the London-based Privy Council.
It declined leave on the basis that the interests of GPG were too remote to fall under rules governing what can and cannot be examined by the Privy Council.
However, the court agreed to delay issuing a written judgment for seven days to let GPG consider a petition.
An “appeal of right” was not available and the court did not consider the case of sufficient public importance to warrant being heard by the Privy Council.
After the hearing, Perry’s lawyer Alan Galbraith described the case as “a long haul” and said he was relieved it was “basically over”.
“We think it’s the correct decision and believe it would be an exceptional circumstance for a petition to succeed. Now our client can get on with commercial interests.”
The Appeal Court ruling was made by a bench of president Justice Gault and justices Blanchard and Glazebrook.
It follows an Appeal Court judgment last month that found United States fund manager Perry Corporation had not breached disclosure rules when it entered into equity swaps allowing it to buy back shares in Rubicon at short notice.
The saga, which has now run for almost 18 months, began when GPG bought 19.8 per cent of Rubicon in July 2002. Subsequent events included:
* GPG being told by Rubicon that US$10 billion (NZ$15.4 billion) hedge fund Perry held 16 per cent of Rubicon.
* Perry telling GPG it had sold its stake but had an economic interest in it through equity swaps, which did not require disclosure.
* Perry unwinding the equity swaps and getting its shares back.
* GPG going to the High Court to try to oust Perry as a shareholder for non-disclosure.
* The High Court ordering Perry to sell and forfeit most of its shares, cutting its stake to 7.2 per cent.
* Perry appealing and the Court of Appeal setting aside the High Court ruling, leaving Perry with 19.8 per cent of Rubicon.
* GPG going back to the High Court but failing to get leave to go to the Privy Council.
Opening for GPG yesterday, Mr Asher said the Appeal Court judgment in favour of Perry Corporation on November 4 had significant and far-reaching implications.
“(GPG) seek leave to have issues raised by this judgment determined by the Privy Council,” Mr Asher said.
GPG also sought orders to preserve the 36 million Rubicon shares held by Perry that were the subject of the High Court orders.
