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 Fay and Richwhite, and was 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.

Fay and Richwhite were also involved in a series of transactions between 1986 and 1993 involving their companies European Pacific; Capital Markets; Fay, Richwhite; the Bank of New Zealand; Tranz Rail; and Telecom New Zealand, transactions in which they personally gained over half a billion dollars - at the same time as their minority shareholders lost $277 million ^[1].

Fay and Richwhite also pocketed $274 million from sales of Telecom New Zealand share options in September 1993 without having to put up any capital in advance^[1].

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

[edit] Tranz Rail

Main article: Tranz Rail

Fay and Richwhite were the Government's adviser on New Zealand Rail Limited from 1990 to 1993 and then distanced themselves from the arrangement to sell the company in 1993, before they bought 40% of the shares and led a consortium with Wisconsin Central Railway (40%) and Berkshire Partners (20%). New Zealand Rail was renamed Tranz Rail in 1995, and listed on the New Zealand Sharemarket that year, with Fay Richwhite selling down their shareholding.

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