Takeovers Panel enters the Otago Power fray

Friday 17th May 2002

The Takeovers Panel meets today to decide what action to take over possible breaches of the Takeovers Code by both rival bidders for Otago Power.

The Dunedin-based power company is the subject of takeover offers from Bluesparks, a joint venture between Electricity Invercargill and The Power Company, and Dunedin Electricity's One Otago.

"The panel considers that both Bluesparks and One Otago and their parent companies may not have acted, or may not be acting, or may intend not to act in compliance with the Takeovers Code," a panel release said.

It ordered Otago Power not to exercise voting rights in its shares "obtained as a result of acceptances that Bluesparks may have or may receive from shareholders" ahead of today's meeting.

The panel had reviewed power of attorney provisions in acceptance forms attached to Bluesparks and One Otago's offers Otago Power shareholders.

It said they could have the effect of transferring voting rights in Otago Power.

The One Otago offer is $3.10 a share and Bluesparks has said its offer will at least match that price.

Bluesparks' backers already own 20% of Otago Power, the maximum allowed under the code without a full bid, and One Otago's offer is for 20%, and also a full bid.

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