Powerco takeover hit by another mistake

By CHRIS DANIELS


Another mistake was revealed yesterday in the troubled-plagued Powerco takeover offer that is covering no one in glory.

This time bidder Prime Infrastructure, of Australia, said that the original Powerco takeover offer filed with NZX contained a mistake.

The company said the mistake was minor and related to a formula for calculating payments to be received by accepting Powerco shareholders.

Prime said the documents now being posted to shareholders were correct.

The latest error comes as the Takeovers Panel investigates a deal involving three Powerco shareholders - the New Plymouth District Council and two community trusts.

Prime is paying a mix of cash and non-investment grade or "junk" bonds in its bid.

A Sydney brokerage, Tricom, has agreed to buy surplus bonds from the council and trusts.

The panel is looking at whether that deal breaks the Takeovers Code.

Tricom was co-lead manager of the public offering and sharemarket listing of investment bank Babcock & Brown in Australia.

Babcock & Brown is closely linked with Prime, acting as financial adviser and seeking out investments.

It is advising Prime on the bid to take over Powerco.

ROLL OUT THE ERRORS

Mistakes in the Powerco takeover bid

The Takeovers Panel gives a waiver for overseas shareholders to be paid in cash only, creating a big loophole.

Bidder Prime Infrastructure buys Powerco shares on market in breach of the Takeovers Code.

The New Plymouth District Council says a "lock-in"deal with Prime guarantees a specified mix of cash-and-bonds payment - but it doesn't.

The Prime takeover offer originally filed with the stock exchange is revealed to contain an error .