The Takeovers Panel is investigating electricity network
company Horizon Energy Distribution after a request by
Marlborough Lines Ltd, which failed in an attempted takeover
in September.
The panel said Horizon may have contravened a section of the
Takeovers Code which prohibited misleading or deceptive
conduct, and will investigate two of the large number of
allegations by Marlborough Lines.
The panel will consider Horizon's decision to issue a revised
profit outlook in September if there was no reasonable basis
for issuing the revision.
Also under investigation will be Horizon directors' decision
to state in the target company statement that the valuation
range of $3.96 to $4.68 per share did not reflect Horizon's
full value, if they had no reasonable basis to make that
statement.
Marlborough Lines' offer was at the bottom of the valuation
range.
The panel will hold private meetings in Wellington on Friday
and Tuesday to consider the allegations.
Horizon is 77.3 percent owned by the Eastern Bay Energy
Trust, whose minority shareholders blocked an attempt last
month to buy the remaining shares.
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