Fed: WoolStock threatens action against AWG

AAP General News (Australia)
08-24-2000
Fed: WoolStock threatens action against AWG

CANBERRA, Aug 24 AAP - The battle over Australia's wool stockpile has intensified ahead
of a special meeting which could decide the future of its ownership.

WoolStock, which controls the stockpile, said today it had issued a legal warning to
the Australian Wool Group (AWG) which wants to buy the stockpile.

The move comes ahead of an extraordinary meeting next month where AWG will attempt
to install its own directors on the WoolStock board.

WoolStock chairman Don McGauchie said today he and his fellow directors were angry
at allegations of misleading shareholders and poor corporate governance being made by
AWG chairman Nick Greiner and chief executive David Sasson.

"AWG are entitled to comment on their offer and our rejection of the offer but Mr Greiner
and Mr Sasson should not resort to baseless personal attacks on our directors," Mr McGauchie
said in a statement.

"The board would rather avoid getting involved in litigation but we cannot accept this
sort of behaviour from AWG if it continues."

WoolStock has twice rejected an offer by AWG for the stockpile, saying it was not up
to the company's own business plan and would disadvantage its 70,000 wool grower shareholders.

AWG, using Corporations Law, has forced the extraordinary meeting but it has failed
to win support from important rural groups such as the NSW Farmers' Association or the
Victorian Farmers' Federation.

Under the AWG proposal, once it has its own directors on the WoolStock board it will
be able to sell the stockpile to itself.

The meeting will be held in Melbourne on September 27.

AAP sw/daw/jnb

KEYWORD: WOOL

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