Fay Richwhite

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Fay, Richwhite & Company is the investment vehicle of Switzerland-based New Zealand merchant bankers Sir Michael Fay and David Richwhite.

The firm was the prime focus of the 'Winebox Inquiry' which dealt with, among other things, tax-avoidance arrangements in the Cook Islands. The publicity surrounding the inquiry generated considerable public ill-feeling towards both Fay and Richwhite, and is one of the principal reasons for their emigration to Geneva. Fay Richwhite were investors in the Bank of New Zealand which was sold to National Australia Bank in 1992.

Michael Fay and David Richwhite were Government's Adviser on New Zealand Rail from 1990 to 1993 and then distanced themselves from the arrangement in 1993 before they bought 31.8 per cent of the shares.

Michael Fay and David Richwhite were also involved in a series of transactions - between 1986 and 1993 - involving their companies European Pacific, Capital Markets, Fay Richwhite and the Bank of New Zealand, Tranz Rail and Telecom New Zealand. Transactions in which they personally gained over half a billion dollars ^{[citation needed]} - at the same time as their minority shareholders lost $277 million.

Fay and Richwhite also pocketed $274 million from Telecom New Zealand share sales (Telecom share option arrangement in September 1993) without having to put up a penny in advance^{[citation needed]}.

Michael Fay and David Richwhite have lived in Geneva since the late 1990s.

[edit] Tranz Rail

In 1993, the firm purchased a 40% share in New Zealand Rail Limited and lead a consortium of Wisconsin Central Railway (40%) and Berkshire Partners (20%). The New Zealand Rail was renamed Tranz Rail in 1995, and listed on the New Zealand sharemarket that year.