Guinness Peat Group director Tony Gibbs yesterday told board members who supported the proposed spin-off and float of $NZ580 million of Australian assets that the plan should be abandoned because shareholders do not support the de-merger.
Mr Gibbs instead wants a year-end cash distribution to shareholders, a restructuring of the GPG Group and preparation made for the sale or float of loss-making threadmaker Coats, with the proceeds returned to shareholders.
Forsyth Barr broker Suzanne Kinnaird said yesterday it was "unusual" for a director to speak out individually, but Mr Gibbs appeared to have gauged investor sentiment correctly because the share price rose 4.6% to 67c after the announcement.
The de-merger proposal was for GPG shareholders to receive shares in two entities, GPG Australia and GPG PLC.
