Changing of guard amid takeover

BY IRENE CHAPPLE

Auckland lines company Vector, embroiled in a full takeover bid for the country's largest power distributor, is also getting an internal rejig.

Three new directors - Bryan Leyland, Wayne Boyd and Michael Stiassny - have been appointed.

Leyland, an electrical engineering consultant and outspoken critic of recent energy sector market reforms, has worked in New Zealand's power industry for 30 years.

Stiassny is a senior partner of Ferrier Hodgson and well known for his role as receiver in some of New Zealand's biggest corporate deals. He is chairman of Metrowater and former chairman of WEL Energy, and is expected to become Vector's new chairman.

Boyd is chairman of Auckland International Airport, and an independent director of Ngai Tahu Fisheries.

The three have been appointed after the constitutional retirement of chairman Wayne Brown and directors Doug Dell and John Wells.

Ratings agency Standard & Poor's yesterday downgraded Vector to a long-term rating of BBB+ and a short-term rating of A-2.

The move was expected, said Vector chief executive Dr Patrick Strange, because of the increase in debt associated with buying UnitedNetworks.

The credit agency noted the long-term outlook for Vector was promising "if asset sales can be completed on time and the company is successful in reaching 100 per cent ownership of UNL within 18 months".

Powerco, which aims to acquire certain UnitedNetworks assets, has an A long-term rating from Standard & Poor's but is now on negative creditwatch.