Forum Archive Index - September 2001

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

Hi Jeremy,

Indeed I agree with you that the shares should have been halted - in fact I
advocated a trading halt along with Brian Jones on Monday.

The fact that the shares continued trading is not necessarily Helen Clark's
problem - that jurisdiction lies with the NZSE and the MSP.  However, Helen
Clark and indeed Air NZ themselves could have requested a halt.

Thus there are numerous parties involved with that "slip-up" and Helen
Clark's comments to the media only further served to fuel the volatile fire.

Best Regards

Ben Dutton



----- Original Message -----
From: "Jeremy" <jeremy@electrosilk.net>
To: <sharechat@sharechat.co.nz>
Sent: Wednesday, September 26, 2001 10:19 AM
Subject: Re: [sharechat] Air New Zealand shares finally suspended


> > If media reports are correct, on Monday, New Zealand's prime minister
> Helen
> > Clark raised the possibility of statutory management for Air New
Zealand.
> > The shares fell 40% as investors stampeded for the exit, fearing the
> worst.
> >
> > Then yesterday Helen Clark recommended investors "hang on" to their
> shares,
> > as she is "absolutely convinced that Air New Zealand has a viable
future".
> >
> > The shares rose by 50% as investors stampeded in.
>
> Well, I'd say speculators rather than investors, but we'll let that pass.
>
> I suspect the prime minister made the first statement as a statement of
fact
> that should have been cash neutral for shareholders.  It was poorly
> interpreted by a lot of people (what a surprise!) and she was forced to
> issue a counter-balancing statement the following day.
>
> It is very difficult to know when to speak and when to shut up in these
> affairs.  If she says nothing she would be in trouble for being weak.  If
> she says something she will be in trouble for inflaming the market.
>
> I'd say that the best thing she could have done arrange an immediate halt
on
> share trading in AIR and appoint a third party manager for a few months.
>
> The facts are that AIR has had all the major damage it's going to get from
> financial incompetence.  The coup de grace would be applied by letting its
> shares trade.
>
> A halt on trading and appointing an administrator is about the only thing
> that can be done to maintain shareholder value.  Shareholder value being
not
> what people paid over the past few days, but the realisable value of the
> assets and/or the income from continued trading.
>
> Jeremy
>
>
>
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