Sharechat Logo

Rainfall no rescuer for Edison's Contact bid

Friday 25th January 2002

Text too small?
Summer rain has done nothing to help Edison Mission Energy's chances of securing Contact Energy, analysts said yesterday.

Despite talk Contact's institutional and "mum & dad" shareholders would reappraise Edison's $4.14 a share offer, analysts said there was little chance Edison would reach by February 3 the 90% shareholding on which the offer is conditional.

It last disclosed a 53% holding, on January 18. The theory was that higher lake levels and lower wholesale electricity prices would make Edison's offer seem more attractive. "But the lakes are no higher than they were at this time last year," ABN Amro analyst James Miller said.

Edison last Friday missed the deadline to lift its offer. Nor can it drop the 90% condition without permission from the Takeovers Panel. Analysts said the panel wouldn't want to create that precedent.

Its final card, if it is not to let the bid lapse, would be to offer a substantial final dividend of, perhaps, 30c.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report