Take-over restrictions
i PA Wellington! 1 Legislation dealing with! I I take-over bids will be in-h | eluded in a comprehensive: i securities exchange bill to i ! be introduced in the next : |two or three years, the Act-[I ling Minister of Justice (Mr!i Wilkinson) told Parliament [> | on Wednesday. I In the meantime, the posi-i I tion of publicly listed com-! ■ panies appeared to be cov-j ered by a draft code on take- i overs recently published by; the Stock Exchange Association of New Zealand, he said. Mr Wilkinson was reply-1 i ing to a question by Mr T. J, I i Young (Lab., Hutt), who ! I asked if the Minister of Justice intended introducing leg-! islation this session to! !‘prevent persons or compan-i lies issuing a bid for the take-1
over of another company, |i : with the creation of uncer-ji : tainties similar to those that I i developed in Borthwick’s bid!’ for the Gear Meat Company i made through newspaper i statements where there has i [ been no discussion with the i 'directorship of the offeree [company before to the news- i I paper offer, and where there i | is much doubt as to whether i the bid will succeed.” i Mr Wilkinson said he wel-l ! corned the Stock Exchange i | Association's initiative in ■ (publishing the draft code but I [agreed with Mr Young that . [legislation would also be I necessary. | The provision in the draft | code for take-overs of publicly listed companies says: “A false or uninformed (market must not be allowed I to develop by the offeror or I offeree company in either’s
shares. In normal circumistances the publication of an! I intent to make an offer.; without actually giving; notice or of making that; offer, will be regarded as an! attempt to create a false! market in either share.” ; Mr Wilkinson said it remained to be seen how effective the take-over code would prove without legislative sanctions. I Asked by Mr Young what action he intended to take to ensure that the law was upheld, Mr Wilkinson said the Justice Department would move if the Stock Exchange [rules were not being followed. One way would be to reduce the percentage of shares for which prior notice of a take-over had to be given from 50 per cent to 25 or 20 per cent.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/CHP19770902.2.110
Bibliographic details
Press, 2 September 1977, Page 18
Word Count
385Take-over restrictions Press, 2 September 1977, Page 18
Using This Item
Stuff Ltd is the copyright owner for the Press. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Copyright in all Footrot Flats cartoons is owned by Diogenes Designs Ltd. The National Library has been granted permission to digitise these cartoons and make them available online as part of this digitised version of the Press. You can search, browse, and print Footrot Flats cartoons for research and personal study only. Permission must be obtained from Diogenes Designs Ltd for any other use.
Acknowledgements
This newspaper was digitised in partnership with Christchurch City Libraries.