MEL - Meridian Energy

[sideline]

"BNY Mellon, a holding company for fund managers including Newton, said its related entities had sold 1.5 million Chorus shares on December 4, contributing to a drop in its stake from 7.5 to 6.3 per cent"

At the very least I would say BNY Mellon would want to sell down to under 5%. A definite overhang.

Bobcat,
BNY Mellon is NOT the ultimate beneficial holder of the shares. They issue the Chorus ADR (Symbol: CHRYY), which enables trading in Chorus on the US markets. They hold the CNU shares as backing for the CHRYY they have issued (ratio 5 CNU to 1 CHRYY).
So the reduction in their holding means that quite a few holders of those ADRs (probably mostly US fund managers diversifying internationally into 'safe' utilities in 'safe' jurisdictions) have sold their CHRYY causing BNY Mellon to cancel those ADRs and selling the CNUs no longer required.
I doubt BNY Mellon makes any investment decisions here, they are mainly arbitrating and collecting fees for providing the service.

I would think their holding in MELCA will be for a similar arrangement, though I could not find a Meridian ADR.

[Beagle]

dear roger...you do have quite firm opinions..on a variety of issues ..well done ..so do I .

However ...disclosure is a wonderful thing is it not...I believe that I have disclosed my holdings in the past....have you....cheers troy

There you go. Disc don't hold Meridian and also arn't short but probably should be.

[iceman]

While not directly related to Meridian, this http://www.nzherald.co.nz/business/n...ectid=11168422
is a good article from Gaynor suggesting Kiwibank should be partially floated rather than Genesis. He's got a valid point !
But no doubt that will not happen. After implementing Anderton's idea creating Kiwibank, Cullen has now moved fulltime to NZ Post to completely finish it off !!!!

[macduffy]

Yes, Kiwibank's been an obvious candidate for privatisation. The most likely reason for not doing so is that the govt doesn't want to attract any more flak! Imagine the uproar from certain quarters - " the Aussies will gain control" - "Labour created it, now National's giving it away".

No, they don't need that coming into election year!

[iceman]

we see govt for what they are - poor managers of our national assets.

So we should be glad they sold them then and got what at this stage looks to be a bloody good price for the Crown !

[777]

Oram failed to take into account the tax the government will collect from the dividends received by the 49% holders.

I also note that an overseas commentator stated that NZ now ranked below Pakistan for investing. All to do with political interference no doubt.

[kyanar]

Would that be the fund manager that purchased pretty much 8% of Meridian when it was at record high, and would be taking a bath now that it's low 90s? I can see why they wouldn't like our markets!

[Harvey Specter]

Once again another ill-informed statement ... Rod Oram on the subject ...

Worse, it is selling income-producing assets and reinvesting in non-income producing assets. Treasury estimates forgone dividends over the next five years will be $810m, while interest costs will be reduced by $780m. So the Government will be $30m worse off over five years because of the floats.

http://www.stuff.co.nz/business/opin...-a-report-card

And not just Rod either, even Treasury concluded the same thing!

given low demand, there is a risk dividends will be lower, and if we didn't get the govt budget/debt under control, the interest rate could have gone up.

[ScrappyO]

so the greens want to keep the next instalment. At least it's not another negative I suppose.

[noodles]

so the greens want to keep the next instalment. At least it's not another negative I suppose.

Have you got a link to that announcement?