Forum Archive Index - January 2001

["Ben Dutton" <bendutton@sharechat.co.nz>]

The papers this morning are crammed full of stories with regards to Contact
Energy's meeting yesterday...I've compiled a quick compendium of the links
to stories on the web, for those that are interested (see below).

Interesting as well to see Edison Mission Energy once again saying that they
are committed to Contact Energy - their spokesman even went so far as to say
that "We rule out selling but we're not ruling out investing more. We are
constantly evaluating..."

This of course is contrary to what the Sunday Star Times reported last
Sunday - according to that paper, "Speculation is rising that Edison Mission
will sell its 40 percent stake in Contact Energy and merchant banks are
reportedly working on proposals for potential buyers".

So there are many conflicting reports in the market as to what is actually
going to happen.  Just to briefly digress, I think that it is a pity that
"sale" speculation seems to be the main driver behind Contact Energy's share
price sometimes.  It's not helped by some brokers, who are constantly
talking up the "possibility" of Edison snapping up the rest of Contact (and
now that Edison may sell to another "cash-rich" buyer who would then want to
buy the rest themselves...).  As we've seen with Fletcher Forests, buying on
speculation of a takeover/sale can lead to disastrous consequences.  So,
let's forget the speculation, and focus on the company for a change.  Think
of any takeover over as a faint and pleasant possibility - but definitely
not a certainty.

Also of interest, David Zwartz is going to challenge Contact's employment
policies - it seems that there are *no* women in any senior management
positions...

Best Regards

Ben Dutton
(Disc. no CEN shares)



Edison Mission Energy says it will not sell its 40 per cent stake in Contact
Energy - and would like to increase its holding at some stage

http://www.nzherald.co.nz/storydisplay.cfm?storyID=170493&thesection=busines
s&thesubsection=

**

Contact Energy chairman Phil Pryke today tried to shift blame for the power
firm's fallen share price on the Government, in an effort to deflect
shareholder rage over payments to directors and managers

http://www.stuff.co.nz/inl/index/0,1008,618239a13,FF.html

**

For the second year in a row, Contact Energy chairman Phil Pryke has been
exposed for his lack of knowledge on company rules and governance

http://www.stuff.co.nz/inl/index/0,1008,619101a13,FF.html

**

Small shareholder champion David Zwartz failed to oust Contact's Phil Pryke
from the chairmanship at yesterday's annual meeting but Mr Pryke was
subjected to a marathon grilling by dissatisfied shareholders

http://www.stuff.co.nz/inl/index/0,1008,619087a13,FF.html

**

A grim-faced, grey-suited Contact Energy board of directors faced off with
more than 1000 small shareholders, decked out in their summer finery, at the
company's annual meeting yesterday

http://www.nzherald.co.nz/storydisplay.cfm?storyID=170492&thesection=busines
s&thesubsection=

**

David Zwartz, the champion of the small shareholder, is to challenge Contact
Energy over its employment policy

http://www.nzherald.co.nz/storydisplay.cfm?storyID=170486&thesection=busines
s&thesubsection=

**


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