WELLINGTON - Guinness Peat Group PLC may have won a victory in its fight with U.S.-based fund Perry Corp. for control of Rubicon Ltd., but market watchers are betting that the war has only begun. On Friday, GPG, a U.K.-based investment company, won its court battle to reduce Perry's influence over New Zealand-based biotechnology and forestry company Rubicon. The High Court ruled Perry must forfeit 12 million of the voting shares it owns in Rubicon and also sell a further 24 million voting shares it owns in Rubicon within 180 days through an "on-market, arms-length" sales process. The result is that Perry's stake in Rubicon will be reduced to 7.2% from 19.8% and GPG's stake will increase to 20.9% from 19.99%. The court ruled Perry breached securities regulations by not properly disclosing its interest in Rubicon. Perry will appeal, saying it was "astonished" by the court decision. But GPG's New Zealand-based director, Tony Gibbs, gave Perry little chance of overturning the ruling. "Just remember the appeal judges could increase the penalty on Perry," Mr. Gibbs said. GPG's argument was that Perry had undisclosed relevant interests exceeding 5% in Rubicon between June 2001 and July 2002. GPG said the lack of disclosure was deliberate and that a notice of disposal of shares filed by Perry to brokerage firms UBS Warburg and Deutsche Securities was misleading. On July 11, Perry said it had raised its Rubicon stake to 16% from 4.8% via UBS Warburg and Deutsche Securities. That disclosure came just a week after GPG had bought a 19.87% stake in Rubicon. GPG complained to the Securities Commission, alleging Perry had a relevant interest in Rubicon before July 11 that wasn't properly disclosed to the market. The discovery that Perry was a substantial holder of Rubicon shares nullified GPG's strategic objectives, the U.K.-based company told the court. The Securities Act requires investors to disclose shareholdings above 5%. Perry said it had no intention of misleading the market or breaching regulations.