SHARES OF BANK OF N.Z.

Southland Times, Issue 25545, 13 December 1944, Page 5

SHARES OF BANK OF N.Z.

METHOD OF FIXING PRICE (P.A.) AUCKLAND, December 12. “We are a non-political body and it would, therefore, be most unwise to offer any opinion as to the advisability or otherwise of a possible change-over,” stated the report prepared by the late Mr W. B. Colbeck, formerly acting chairman of the Auckland Stock Exchange, who died suddenly last-week, in referring to the possibility of the Bank of New Zealand becoming a State bank. The report was read at the annual meeting of the Exchange today. “But if a change-over from private to State ownership should take place then I think the Exchange has every right to discuss the price to be paid for the assets to be transferred,” stated the report. “The deal in this case would be in a different category from the case of shares in the Reserve Bank resumed by the Government. These carried a fixed interest rate and therefore the holders had no particular interest in the assets of the Reserve Bank, the shares of which were quite properly taken over at their market value. The position of the shareholders of the Bank of New Zealand is very similar to the position of shareholders in the Westport-Stockton Coal Company. These shares were taken over by negotiation on the price between the vendor and the purchaser and the same method ought to be adopted in the event of shareholders in the Bank of New Zealand being bought out by the State. If the two parties cannot come to an agreement, then the matters in dispute should be submitted to some agreed-upon court of arbitration.