Contact Energy cancels treasury stock

Contact Energy said today it had decided to cancel the shares the company holds in itself as treasury stock.

Contact holds 27.3 million non voting shares, equivalent to 4.52 of its issued share capital.

The shares were originally purchased as part of the company's share buyback programme conducted between March 2000 and March 2001.

Chief executive David Baldwin said there was no compelling reason to retain the stock.

In February, Contact Energy announced plans to merge with its 51 per cent owner, Australia's Origin Energy.

Implementation of the plan has been delayed two months and analysts believe Contact shareholders were likely to reject the "takeover in drag".

- NZPA