Brierley regrets lack of aggression as worries remain over Coats subsidiary

Guinness Peat Group (GPG) shares closed up 5c, or 6.67 per cent, at 80c after chairman Sir Ron Brierley updated shareholders and expressed regret at his lack of aggression.

Sir Ron, 71, last year signalled his retirement in 2010 and has said his last years at the investment company would be its best. GPG's principal operating subsidiary, Coats, had been adversely affected by the economic downturn, he said yesterday.

He also said GPG was developing exit options for investments that no longer had future potential.

The company continued to examine "new prospects" in the context of changed market conditions, he said.

"In retrospect, we could have been more aggressive in pursuing new opportunities in earlier months but caution was the overriding influence," Sir Ron said in a market update.

Grant Williamson, director of Hamilton Hindin Greene said it was good that the company was updating shareholders regularly and no one could blame it for taking a conservative view in the current environment.

"The concern has always been their largest investment, Coats, which has been disappointing for them. Investors would love to see GPG make an exit from that investment at some stage," Williamson said.

Sir Ron said the company had made one material divestment, which was MYOB, and had three new holdings.

Coats has a book value of $782 million.

GPG's New Zealand portfolio includes shares in Fisher & Paykel Appliances, Tower, Turners Auction, Turners & Growers, Allied Farmers and ASB capital preference shares.

The question of whether GPG will carry on without Sir Ron remains an open one.

- NZPA