Developer scuttles BrisConnections vote

The major shareholder in Australia's largest road tunnel project has torpedoed his
own plan to wind up the company, selling his voting rights for $4.5 million.
Melbourne entrepreneur Nicholas Bolton, through his company Australian Style
Investments (ASI), called the extraordinary general meeting in Brisbane on Tuesday.
The vote had been sought to allow unit holders to wind up BrisConnections, the
developer of Brisbane's $3.4 billion Airport Link tunnel, and relieve them of the
two $1-a-unit calls on their investment.
BrisConnections chairman Trevor Rowe told the meeting the company was viable, but if
it was wound up liquidators would pursue any outstanding instalments.
"The board concludes, quite frankly, that as a going concern BrisConnections has
economic value," he said.
But it was revealed the fate of the vote was decided last Thursday when Mr Bolton
struck a deal with Thiess John Holland, the design and construction contractor for
the Airport Link, to buy his crucial proxy votes and block the wind-up.
The about-face by Mr Bolton, who was not at the meeting, came as a shock to angry
unit holders.
Unit holder Luciano Giangiordano described it as "a sham".
Another unit holder John Cunningham said he was "disappointed" by both
BrisConnections and Mr Bolton.
"I feel most of the unit holders have been betrayed," he said.
Thiess John Holland said in a statement the deal, which began with an approach by
Thiess to ASI last Wednesday, had been made to save "a vital piece of infrastructure
for the people of Queensland".
"Thiess John Holland took this unprecedented action to seek to ensure the project
continued without disruption," it said in a statement, adding the project would
create around 10,000 jobs over its life.
BrisConnections was listed last year as a partially-paid stock, with investors
paying an initial $1, with an additional $2 owed in two future instalments.
The stock subsequently tumbled to less than one cent amid the global credit crunch
as institutions bailed out.
Investors are still required to pay the first of these instalments on April 29.
In another twist, James Byrnes, the corporate representative for another large unit
holder Brisbane Toll Road Link Pty Ltd, unsuccessfully sought the removal of Mr Rowe
as chairman of the meeting because of a potential conflict with his role as chairman
of major unit holder QIC (Queensland Investment Corporation).
Mr Byrnes said he planned to take legal action on behalf of his client and possibly
other unit holders.
"We would be happy for them to participate in a class action," he said.
"He (Mr Bolton) has ... led a lot of nice people up the garden path."
After the meeting, Mr Rowe indicated BrisConnections may become a private company,
which could also be a way out of the instalment payments for some investors.
He also said he planned to push the project's underwriters Macquarie and Deutsche
Bank AG to agree on a new plan to let off investors.
A similar move by Macquarie failed last week.
"I don't control the various parties here and we are coaxing them to support the
Macquarie Bank initiative, but so far the other parties haven't," Mr Rowe said.
Queensland Treasurer Andrew Fraser said on Tuesday it was important the project
remained on track and the private parties settled their dispute themselves.
The 6.7km toll road project is due to be completed by mid-2012.