Forum Archive Index - October 2000

["Mark Hubbard" <mhubbard@es.co.nz>]

For what its worth, my slant on this is the opposite to that taken by most share chatters. As far as FEG is concerned, the problem is not Fletchers management, it is the Commerce Commission - ie, govt. regulation.

 

Such intervention distorts the normal course of the market, and ultimately leads to inefficient markets and loss of confidence.

 

After the annoucement FEG free-fell on ASX and the $NZ dollar hit new lows, so there will be fireworks on the NZSE tomorrow.

 

Again though, Fletcher management were simply looking for the best deal for their shareholders - how can they be expected to second guess the whims of bureacrats on the Commerce Commission? It is successive govt's in NZ, especially the present bunch, who regulate and the distort the normal functioning of the market on whom the blame truly lies.

 

All IMHO of course :)

 

----- Original Message -----

From: Ted

To: sharechat@sharechat.co.nz

Sent: 12 October 2000 6:24 PM

Subject: Re: [sharechat] No to the FEG deal!!!

"Jason Ching" wrote:

The Commerce Commission said NO to the fletcher deal!!!

Unfortunately only to the FEG deal. They can only rule on matters relating to commercial dominance and monopolies.

Regrettably their powers do not extend to allowing them to interfere with the gross mis-management of the Fletcher circus.