Looks as if the acceptances are starting to gather some momentum.
Most the big funds will leave it to the last minute, looks like it could be very close call.
The Mounties will still need to get Overseas Investment Office (OIO) approval by April 30, and the two Cabinet ministers likely to make the final assessment are not expected to apply the usual rubber stamp.
The Canadians' bid is caught under two provisions of the overseas investment rules. Any acquisition by a foreign buyer of more than 25 per cent of a company, where the value of the securities or assets exceed $100 million, must be scrutinised by the OIO. But where sensitive land is involved, the Finance Minister (Michael Cullen) and Land Information Minister (David Parker) have the final say.
I wouldn't put it past those two to veto it. Labour has already made a pre-emptive strike against the deal with their retrospective tax changes.
Yes, it has that smell about it now.
Although AIA is my biggest NZX holding and I have accepted the offer, I somehow won't be too upset if Aunty H and Uncle M say "No" to it. If so, AIA will continue to be a great cornerstone for my NZ portfolio.
According to One Network News tonight the Govt is going to enforce (amend) something called the 'overseas investment act' to prevent the sale of AIA to an overseas party.
According to One Network News tonight the Govt is going to enforce (amend) something called the 'overseas investment act' to prevent the sale of AIA to an overseas party.
Hence, its all over!.
Hugh Chavez couldn't have done a better job! Wonder if he has heard of Helen?
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Originally Posted by Grimy
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