PLACEMENT VETOED

Press, Volume CIX, Issue 32222, 14 February 1970, Page 16

PLACEMENT VETOED

Public Issue Preferred (N.Z. Press Association* WELLINGTON, Feb. 13. The Minister of Finance (Mr Muldoon) today confirmed that the Government had refused the application of Aquitaine (Australia and New Zealand), Ltd, th be allowed to issue $2.5m worth of shares in New Zealand to a restricted number of subscribers in a private placement. | The Minister said that because of tlie special circumstances involved—the fact that the company was en gaged in oil exploration in New Zealand—the Government would have been prepared to allow Aquitaine to make a public issue of shares for the amount quoted. “It is pretty clear that these shares would be a desirable investment,” he said today. "The Government takes the view that they should be made available as widely as possible.” The company had taken the view, however, that it was not prepared to take up the concession on these terms.

Asked whether there appeared to be room for move ment in either the Govern|ment’s position or that of the [company, the Minister said: [“There is no room for moveIment in our position.” A company spokesman said yesterday that Aquitaine beJlieved that the appropriate I time for a public issue was [ when a discovery has been (established as a commercial I proposition. I The policy of Aquitaine as an international group had (always been against inviting (the general investing public to join with it during the financially hazardous exploration phase. Aquitaine (New Zealand) will drill an exploration well in the Golden Bay area for Tasman Petroleum, in which L and M Oil (N.Z.), Ltd, has a 25 per cent interest