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Terpu, Melewar lose appeal against bank's share sale

Appeal
Marsha Jacobs-AFR 19.04.08

Two shareholders trying to stop Australia and New Zealand Banking Group selling their shares have lost their appeal in the NSW Court of Appeal. An injunction granted last week to stop the sale of the shares expired late on Friday and was not renewed by the court.

The bank is now free to sell shares in Conquest Mining owned by managing director John Terpu, and shares in Gindalbie Metals that were owned by Malaysia's Melewar Steel Ventures for two weeks after the collapse of Opes Prime.

Mr Terpu and Melewar have brought a case against Opes Prime for misleading conduct, and as part of that claimed the bank should be stopped from selling their shares until the case was heard. Earlier in the week, Mr Terpu and Melewar lost then-bid in tfie Supreme Court to extend an injunction stopping the sale of the shares. Lawyers for Mr Terpu and Melewar appealed against the decision and the injunction was extended until the matter could be heard on Friday. The court will deliver its reasons for refusing the appeal on Monday.

In the original decision, judge William Windeyer ruled that if the misleading conduct case were successful, Mr Terpu and Melewar could be compensated by having their shares bought back on-market. He rejected then" argument that loss of control of the stakes changed the controlling ownership in Conquest and Gindalbie. The hearing over alleged misleading conduct begins on May 2.