Becton hits back at Olney-Fraser board seat bid

By a staff reporter

The lending constortium for the failed Becton Property Group Ltd has threatened to put the group into administration if corporate raider Mariner Corporation Ltd continues its push to elect its boss Darren Olney-Fraser to the board.

Goldman Sachs and Fortress Investment Group put Becton Property Group into receivership in February, after refusing to grant it a further extension on its debt, which had blown out to $25 million.

In an update to the Australian Securities Exchange, Mariner said it had advised its directors not to continue to push for the meeting to elect Mr Olney-Fraser, which was initially called for 8 February, about two weeks before Becton was put into KordaMentha's hands.

The current tilt to elect the Mariner chief executive officer comes after a failed bid in October.

Mariner said an administration would not be in shareholders' interests so it would no longer press directors to call the meeting. 

"As this is not in the interests of Becton shareholders, or Mariner’s shareholders, Mariner has advised the Becton directors that, while it does not withdraw its 8 February 2013 requisition at this stage, it does not press the directors to call the meeting pending further advice from Mariner," Mariner said.

Goldman Sachs/Fortress had advised Mariner yesterday that it would put Becton into administration if "Mariner continues to press for a shareholder meeting to elect Mr Olney-Fraser to the Becton board".

Marnier chairman Don Christie sits on the Becton board.

Mariner said in the update that it wanted Mr Olney-Fraser the board "so the Becton board could meet its minimum number of directors and quorum requirements, and to improve the prospects of the Becton board bringing Becton out of receivership".

When Becton was put into receivership, receiver Mark Korda said the move mainly affected the ownership and control of Becton, not its business operations.

Last month, Mariner renegotiated the terms of its loan over its Becton stake, winning a three month extension.

Under the revised terms, the $600,000 loan will be charged over Mariner shares, instead of Becton, and extended for three months until September 30.