Stock Exchange critical

Press, 28 May 1981, Page 18

Stock Exchange critical

PA Wellington The president of the Stock Exchange Association of New Zealand, Mr M. I. Harriman, yesterday criticised Fisher and Paykel’s decision to withold its offer price for Henderson and Pollard shares until trading began on exchanges on Tuesday. In a statement, Mr Harriman said that F and P's action negated the objective of a free market in which all investors have equal opportunity to participate on equal terms.

Mr Harriman “emphasises the obligation on the stock exchange to operate an orderly and informed market, and notes the dependance of many investors on the advice given them by members of the exchange.” “To operate such a market, the exchange relies heavily on listed companies to inform the exchange as required by the listing agreement, of ’matters likely to affect the. value of listed securities.

“Although Fisher and Paykel, Ltd, advised the exchange of its intention to

acquire the increased holding in Henderson and Pollard, Ltd, the company’s decision to withhold, its offer price until trading commenced, negated the basic objective of a free market in which all investors have equal opportunity to participate on equal terms.”

Mr Harriman regrets that the method employed by Fisher and Paykel resulted in an inadequately informed market and made it impossible for many investors to obtain the advice needed to make an informed decision on the value of the offer before it was withdrawn, the statement said.