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Edison set for CEN majority

By Phil Boeyen, ShareChat Business News Editor

Tuesday 22nd May 2001

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Edison Mission Energy says it's poised to take a majority holding in Contact Energy (NZSE: CEN) after heavy demand for its market stand at $3.10 per share.

The cornerstone shareholder went on market Tuesday morning to shift its holding beyond 50%, and says it is gratified with the response from shareholders to its offer.

Tuesday night the NZSE was verifying the individual transactions in response to EME's stand.

Senior vice president, Bob Driscoll, says the verification process was critical to the integrity of the market process and therefore the offer.

"We deliberately placed a cap on the on-market stand of 5,000 shares per shareholder and obviously this results in a lengthy verification process.

Mr Driscoll says the company is delighted with the response of both the retail and institutional shareholders to its offer.

"Today's acquisition reinforces EME's long-term commitment to Contact Energy, and to building our business in New Zealand."

Mr Driscoll said Mission Contact Finance, a subsidiary of EME, intends offering approximately $150 million redeemable preference shares to the public in June.

"This is a further reinforcement of our commitment to New Zealand," he says.

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