Claims Of Dirty Tricks In Lead-up To Float
The Age
Saturday November 25, 2000
ASX Perpetual Registrars, which this year won the contract to provide registry services to NRMA Insurance Group, has accused Computershare of anti-competitive conduct in the lead-up to NRMA's $4.1 billion float.
In documents filed with the Federal Court yesterday, Perpetual Trustees and APRL claim Computershare withheld crucial bureau services from APRL in the weeks before the NRMA listing in order to damage its rival and extract higher fees.
APRL, a joint venture between the Australian Stock Exchange and Perpetual Trustees, relies on Computershare technology to conduct registry operations. At the same time, it is in fierce competition with the global operator.
The documents filed yesterday were the latest step in a bitter legal dispute between the parties, which began soon after Perpetual and ASX announced their registry joint venture in March.
Computershare instigated the proceedings against the two companies, and against ASX officer Chris Hamilton, alleging breach of confidential information.
But in response, Perpetual and APRL yesterday alleged in their defence and cross-claim that Computershare twice suspended supply of bureau services, ``knowing the time constraints under which APRL was operating in relation to the (NRMA) share issue and that there was no other supplier of Bureau Services available to APRL".
Close to two million applications for shares in NRMA were received by APRL before the listing, requiring processing within a limited period.
Perpetual and APRL claim they had no choice but to accept a higher-priced fee package that Computershare had ``sought to impose on, or alternatively offered to, APRL" on about July 6. They accuse the global registry company of duress and taking advantage of its market power to damage APRL.
Computershare managing director Chris Morris is also accused of anti-competitive conduct. It is claimed he was knowingly concerned in the Computershare's alleged contraventions and threatened contraventions of the Trade Practices Act.
APRL and Perpetual say the alleged conduct was aimed at damaging APRL and at deterring it from engaging in competitive conduct, by inhibiting its ability to win and retain registry services customers.
The latest court documents only serve to confirm the depth of hostility between Computershare and its rivals, which has been evident since court proceedings began. Rivalry has been intense, inside and outside the courtroom, with each party engaging in point-scoring as they tussle for registry work in the Australian market.
Winning the NRMA contract was a coup for APRL, with NRMA ranking second only to Telstra among APRL's clients. But Computershare also claimed victories when addressing shareholders at the recent annual meeting.
Computershare is yet to respond to the allegations in the Perpetual/APRL cross-claim. The parties are expected to be back in court in mid-December.
© 2000 The Age