By GEOFF SENESCALL
More than 100 former Southern Petroleum shareholders are believed to have joined the fight to extract more money from Fletcher Energy, which took over the company five years ago.
They have sent in their cheques for $288 to law firm Fraser Powrie, which is coordinating an insider trading action against Fletcher on behalf of its client, Eldercare, formerly New Zealand Petroleum.
The claim is that crucial price-sensitive information was withheld at the time Southern Petroleum was being taken over by Fletcher.
This information was uncovered by Eldercare during a pre-issue discovery process as part of another legal action it was taking against Fletcher, relating to rights to the Mangahewa gasfield in Taranaki.
Eldercare had owned about 400,000 shares in Southern Petroleum. Letters have been sent to about 600 of 2000 other former shareholders.
An application is set down to be heard in the High Court at Auckland next month. The dissenting former shareholders are claiming up to $23 million, or 69c a share, plus penalties.
Fletcher Energy said it would vigorously oppose the application to bring proceedings. It had read the allegations, made by Eldercare in its July 14 letter, to shareholders and was extremely concerned.
Southern Petroleum shareholders join fight
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