Henry said he'd had an arrangement with the event organisers that there would be no media coverage.
"I said at the time it wasn't for publication and I don't know how it got into the papers. I asked the people running it that there be no reporters."
Henry said his comments were intended for the private audience and were not at all serious. "They were said in jest and in fun."
Henry has been a regular at speaking engagements around the country since standing down as All Blacks coach and has shown a wry wit seldom seen during his time at the helm of New Zealand's rugby aspirations.
However, he was no longer amused: "I've now put it in the hands of my solicitor."
Hawke's Bay Rugby chief executive Mike Bishop said he was extremely disappointed to hear Henry's comments had been repeated outside of the "private function".
"If Sir Graham wishes to take legal action over this then we would fully support him."
Hawke's Bay Today editor Anthony Phillips said a sports reporter from the newspaper prepared the article after attending the event.
"I don't believe there was any directive either way - to report from it or not to," he said.