Edison offer lapses

The failure of bid has been predicted for some time, mainly because the price being offered failed to win over institutional investors who held strategic parcels of shares.

Contact's majority shareholder, Edison Mission Energy, says it had not achieved the necessary 90% threshold of acceptances.

EME Asia Pacific senior vice president, Bob Driscoll, says the shares held by Contact shareholders who had sent in their acceptance forms were released for trading before the stock exchange opened on Monday morning.

"We regret we are not able to purchase the shares of those shareholders who had wanted to accept our offer."

Mr Driscoll says that the lapsing of the offer does not affect Edison Mission Energy's commitment to Contact Energy or New Zealand.

"We are Contact's majority shareholder and plan to remain so. We are confident Contact will continue to perform well. We are committed to being a long term player in the New Zealand energy sector."

Contact Energy chairman, Phil Pryke, says the company respects shareholders' decision not to sell their shares at this time and views it as a vote of confidence in the future of the company.

"We look forward to continuing to enhance shareholder value through pursuit of the company's strategy."

Mr Pryke says that during the course of the takeover there has been discussion that CEO Steve Barrett may return to Edison Mission Energy, but he has confirmed that Mr Barrett will continue in the role.

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