Vector row 'will not affect listing'

The latest drama at the Auckland Energy Consumer Trust - the owner of soon-to-float power lines company Vector - has come at "as bad a time as it could have", says chairman Warren Kyd.

However, he does not believe the trust's scrap with its executive secretary Gary Sturgess, or the associated publicity, will affect the company's $593 million share offer and listing.

The AECT said it had dismissed Sturgess but said a court suppression order prevented it saying more.

Sturgess did not return calls yesterday - but had previously said his departure was "a legal matter" that he could not discuss.

The AECT statement followed a report in the Sunday Star-Times that quoted Sturgess talking of a "breakdown of enormous proportions" between the trust, which represents Auckland customers, and Vector.

The report also talked of a "recent" proposal from Australia's Babcock & Brown Infrastructure - formerly Prime Infrastructure - that could have seen Vector avoid a share float.

It did not say what connection - if any - existed between this proposal and Sturgess' departure from the company.

Babcock & Brown is the owner of New Zealand's second-biggest powerlines company, Powerco.

The publicly-elected five-person trust has a history of infighting, including splits between those in favour of a share float and those opposed.

However, Kyd said the latest headline-grabber was different: "None of the trustees is involved" and "this is an employment matter."

Kyd said he was surprised Sturgess had talked to the media - "given that Mr Sturgess applied for an extension of the suppression order on Friday".

"While the suppression order is in place, we cannot comment on the dismissal except to say the trust acted swiftly, responsibly and appropriately, and on advice from senior legal counsel."

He said the trust would consider applying for the order to be lifted in the next few days.

"Once the details are available, the facts will speak for themselves."

Kyd denied a breakdown in the AECT-Vector relationship.

"The relationship between the trust and Vector has never been better. It is very positive, with both parties working well together and both focusing on the success of the IPO [initial public offering]," he said.

The IPO was "progressing as planned".

The float

* Vector is New Zealand's biggest energy network company, operating in the electricity, gas and telecommunications fields.
* It is selling off 24.9 per cent of the company.
* Vector is due to list on the stock exchange as the sixth-biggest company on August 26.