2006-09-14 Chastened Brambles homesic

BRAMBLES Industries has moved a step closer to ending the most traumatic chapter in its corporate history, gaining approval to call a shareholder vote to dismantle its ill-fated dual listing on the London and Australian stock exchanges.

The 317-page booklet detailing the proposal to unify its listings on the ASX failed to generate much excitement yesterday.

But shares in the world's largest warehouse pallet supplier rose 4.5 per cent to a five-year high of $12.16 — before closing 44¢ higher at $12.08 — partly on speculation that scrapping of the dual listing could make Brambles an easier takeover target.

Brambles chairman Don Argus, in a letter to shareholders, said the proposed "unification" would eliminate "the complexity of the DLC (dual-listed company) structure", remove the differential on the value of Brambles shares traded on each of the exchanges and "enhance Brambles' position as a leading company on the ASX".

He said it would also help the company focus on producing growth from its remaining CHEP pallet and Recall record management units.

The dual listing is a legacy of Brambles' merger with GKN Holdings of Britain in 2001, which was followed by a lengthy run of profit disasters and embarrassing mishaps by the company, including the mystery of the missing pallets.

Brambles, which will put the proposal to a vote in November, needs 75 per cent of its shareholders to approve the deal.

It is also expected the move could help the share price, given it will boost the company's index weighting on the ASX, which could attract more global fund managers to its register.

The resurrection in Brambles' fortunes has been underlined by the company's recent divestment of its waste management and industrial services arms, which raised $US3.4 billion ($A4.5 billion).

The annual report revealed that chief executive David Turner received a tidy pay rise, from $US5.1 million to $US6.2 million. This was bolstered by a huge lift in his options and cash bonus.