In the short time it has been in force, we believe the Takeovers
Code has achieved many of these objectives. Industry feedback
on the effectiveness of the Code since its implementation has
been generally very supportive. In fact many who were
originally opposed to the implementation of a Takeovers Code,
are now supportive of the current regime.
Incidents such as the Lion Nathan takeover of Montana Wines
have illustrated how the Code has provided a more
transparent and certain process in takeover situations. The
Takeovers Panel, through their immediate reaction and
resolution of the Montana takeover situation proved very
effective in enforcing the Code.
All prospective takeover offers must now comply with the Code
and adhere to its core concepts of fair and equal treatment
and participation of all shareholders.
By requiring an offer to remain open for a specified period
and to all shareholders equally, the Code has removed some of
the urgency seen in takeovers of old, where shareholders were
coerced by brokers into selling out at a lightning pace for fear
of missing out on the deal.
Shareholders, led by fund managers, are now taking the time
to consider offers and wait for competing bids to emerge.
Edison Mission’s bid for Contact Energy is a good example.
Edison was forced to up its offer and extend the deadline on
acceptances in the face of strong opposition to its bid.
Although unsuccessful, it is a good example of the new regime’s
requirement to treat all shareholders fairly and equally.
We are confident that perceptions of the New Zealand market
in relation to takeovers have been greatly improved since the
introduction of the Code.”
The Minister of Commerce, Hon Paul Swain, spoke to a recent seminar on takeovers in Auckland. He had this to say
about the Takeovers Code:
