2 THE NATIONAL BUSINESS REVIEW November 30, 2007

WHERE TO FIND IT

Ad Hoc ...... 33 Critical investor blasts Satara Advertising ...... 32-33 Around the Traps ...... 40 Arts ...... 50 Australia ...... 20 company when they bought their But stung kiwifruit co-operative says it treats its shareholders equally Brief Case ...... 14 shares, and we treat all our sharehold- Brockie cartoon ...... 19 ers equally,” he said. Business Traveller ...... 23 Sarah McDonald by a capital charge deducted from the board to shareholders. Elevation Capital began buying Business Week ...... 16 company’s earnings, to compensate Elevation has had no response into Satara in February, when the Car Torque ...... 28 A stoush is brewing between a list- investors for putting up the cash to from Satara to a detailed letter it sent share price was around $1.10. It is Commodities ...... 39 ed kiwifruit co-operative and its big- fund Satara’s asset base. the board on October 17. currently at $1.04, near its 52-week Critic’s Choice ...... 50 Economically Speaking .... 35 gest institutional investor. Satara’s board has the power to set It sent another letter this week reit- low of $1.00. Editorial ...... 19 Elevation Capital, a disgrun- this capital charge and lowered it at erating its concerns. Elevation’s 6.12% stake is worth Foreign Affairs ...... 18 tled shareholder of market minnow the company’s annual general meet- These include what Elevation about $1 million. Hive Mentality ...... 13 Satara, is demanding a raft of changes ing in April. sees as an inefficient balance sheet; Earlier this month, the co-opera- Interest rates ...... 39 in light of the company’s recent profit Elevation Capital managing direc- underperformance as evidenced tive revised its profit guidance from In Tray ...... 20 downgrade. tor Chris Swasbrook said he didn’t by a lower net profit per tray and a $5.1 million before rebates and tax to Investors’ Diary ...... 39 The boutique fund manager was think this was the right thing to do in more extreme decline in orchard gate “less than achieved in the previous Law ...... 14 Looking Ahead ...... 35 especially critical of what it sees as a light of the fact that interest rates had return than competitors; and the con- year.” Media ...... 32, 33 disparity between holders of the two been steadily increasing for the last 12 tinued poor performance of Satara’s Last year the company made $3.6 Media Watch ...... 33 classes of Satara shares. months. orchard division. million before rebates and tax. Motoring ...... 28 The company has a complicated “We’re not getting a return that This part of the company recorded It has not given any indication of NBR Exciting Companies ..29 hybrid co-operative capital struc- properly assesses the risk … inves- a $2 million loss in 2006 and a $3.8 how far under last year’s profit its new O’Brien Column ...... 16 ture with “transactor” shares held by tor shareholders just want to see an million loss in 2005. result is expected to fall. On the Money ...... 17 growers and “investor” shares traded appropriate return on capital, and are Satara chairman Andrew Fenton Mr Swasbrook said none of the Order Paper ...... 13 on the NZAX. being treated unfairly,” he said. said the company got a lot of corre- reasons given by the board for the Owen McShane ...... 21 People in Business ...... 47-49 Transactor shareholders earn “We would like increased trans- spondence from shareholders and downgrade were unpredictable and Politics ...... 13 money through getting a payout per parency and answers provided to all couldn’t respond to individuals on he’s not going to stop demanding Printout ...... 24 tray of kiwifruit set by Zespri and an shareholders.” specific points. answers. Private Bin ...... 18 additional rebate set by Satara, while Mr Swasbrook also said there was “[Elevation] is entitled to their But despite this, Elevation is not Property ...... 40-44 “investor” shareholders get a divi- a lack of transparency around how view but I wouldn’t make any com- planning to sell its stake until Satara’s Richard Inder ...... 15 dend per share. the capital charge was calculated and ment on it. valuable asset base is better reflected Rural Business ...... 12 This investor dividend is funded inadequate communication from the “They knew the structure of the in the share price. Sharemart ...... 39 Share tables ...... 36-39 Shoeshine ...... 51 Straight Thinking ...... 21 Technology ...... 24 Morrison, top awards The Inder Analysis ...... 15 The Scribbler ...... 19 Infratil founder Lloyd Morrison scooped the and corporate objectives and has performed Top Trades ...... 39 pool at the Deloitte/Management magazine consistently over time.” Tracking the Economy...... 35 Travel ...... 29 Top 200 Awards, held in last night. Queenstown businessman Eion Edgar won Unlisted ...... 39 Mr Morrison beat off competition from NZ the Designworks Enterprise IG Visionary Lead- Your Wealth ...... 16-17 Post chief executive John Allen and Foodstuffs er Award for his contributions to business, edu- Auckland’s Tony Carter as the top business cation, arts and sport. COMPANIES INDEX executive for 2007. Nelson’s John Palmer, chairman of Air New Infratil was named company of the year. Zealand and , was named QBE Affco ...... 14 The judges said Mr Morrison, who had his Insurance Chairperson of the Year. Ascot Private Equity ...... 6 first board meeting as an Auckland Interna- Other awards winners: Botry-Zen ...... 16 tional Airport director this week, was an astute Kensington Swan Ethical Governance Digi-Tech...... 4 Elevation Capital ...... 2 man and strategically brilliant. Award: NZ Aluminium Smelters ...... 16 “Under his visionary leadership and early Marsh Most Improved Performance Award: Icon Digital Entertainment 14 recognition of the potential of infrastructure Kiwibank ICP Bio ...... 6 and utilities, Infratil has produced consistently Colliers International Best Growth Strategy: Infratil ...... 2 excellent results,” they said. Jasons Travel Media ...... 16 “The company is becoming one of the Deloitte Emerging Enterprise Award: Kerifresh ...... 16, 51 world’s most enlightened, best managed, Endace Kordia ...... 10 Mainfreight ...... 16 focused and risk-wise investors in growth infra- NZIM/Eagle Technology Young Executive of NZ Oil & Gas ...... 11 structure. the Year: Mason Pratt, managing director, Pro- Orcon ...... 5 “It is thoughtfully led, articulates its strategy voke Solutions. Pike River Coal ...... 11 ...... 16 Pumpkin Patch ...... 16 Rakon ...... 16 Sanford ...... 16 Warehouse in play Satara ...... 2 Sealegs ...... 16 City ...... 51 From page 1 his own bid, it seems reason- Telecom ...... 10 TEMPS FOR able for other shareholders to The Warehouse ...... 1 and retain the status quo, per- expect Mr Tindall to take the Turners & Growers ...... 16, 51 CHRISTMAS! haps on the offchance another highest offer, provided it’s fair. Tourism Holdings ...... 23 bidder shows up. But there’s always a chance PEOPLE INDEX Christmas is But any third bidder would Mr Tindall just cannot part approaching fast! Have you started thinking about a struggle to make a full takeo- with his baby or is courageous Wade Allen ...... 44 suitable temporary solution? ver given the blocking stakes enough to hold out for an out- Scott Bartlett ...... 5 This is the ideal time to ensure held by the two supermarkets. rageous price. Nigel Beach ...... 31 you have suffi cient temporary coverage for the festive season. Given Mr Tindall put The Although Woolworths Giovanni Bisignani ...... 23 Mike Bradshaw ...... 8 Our quick response team can Warehouse into play himself didn’t get to make a takeover tailor your needs to ensure your and the share price rose above bid for The Warehouse, its Anne Callinan ...... 1 business continues to operate offer was rumoured to be in Linda Coleman ...... 43 profi tably for the holiday period. James Craig ...... 1 Whether you need staff for the range of $7-7.50. CLASSIC Eion Edgar ...... 2 3 hours or 3 months we have But Forsyth Barr ana- quality temps available for an Tony Frankham ...... 16 Mechanical self-winding movement. “Sun” bezel immediate start in the following QUEENSTOWN lyst Guy Hallwright said if Tony Gibbs ...... 51 set with 62 diamonds. Sapphire crystal, screw- areas: administration, reception, the Commerce Commission Stephen Goldson ...... 31 customer service, data entry, Richard Griffin ...... 34 down crown. Waterproof to 50 m. Steel case 39 mm. accounts, PA/EA, warehousing, EXCLUSIVE pursued an appeal the share freight, import/export. price would probably drift off Layne Harwood ...... 43 Christmas is a busy enough time Growth region, commercial as investors factored in that Karim Hussona ...... 4 without having to worry about property investment, Nikola Kasabov ...... 30 where to fi nd experienced and uncertainty. John Maasland ...... 16 effi cient temp staff. secure tenancy, 8.5% return est. “If they [the supermarkets] Ross MacKenzie ...... 31 We can help to eliminate your can’t come back with a bid it is stress – leave it to the experts! ALSO Ian McCrae ...... 31 Call Louise or Jenna at not worth the share price,” he Paul McGilvary ...... 29 O’Neils Personnel on Residential Development said. Lloyd Morrison ...... 2 09 300 6360 or visit consent granted Alpine views, The Commerce Com- John Reid ...... 4 www.oneilspersonnel.co.nz campervan income, mission yesterday said it David Salisbury ...... 11 haast pass. Tony Stewart ...... 24 Offers over $900k. remained concerned about Sue Sullivan ...... 23 306 Lambton Quay, Tel 04 473 9129 competition in the supermar- 197 Broadway, Newmarket, Auckland Tel 09 524 6645 Chris Swasbrook ...... 2 Phone 0274-718-738 ket sector and was studying David Teece ...... 6 [email protected] Email the judgment before consid- Stephen Tindall ...... 1 www.partridgejewellers.com [email protected] ering whether it would appeal Keith Turner ...... 16 the decision.