Vector silent on sharemarket listing - or not

Energy network company Vector is keeping mum on news that its only shareholder, the Auckland Energy Consumer Trust, is exploring ways to avoid a sharemarket listing.

Vector's corporate bonds - which carry preferential rights in any share float - fell in price yesterday, their yields rising to more than 5 per cent.

Despite both company and trust saying a sharemarket listing will take place before the end of the year, the trust is about to appoint an investment bank to assess alternative fundraising deals.

These include a proposal from an Australian company that invests in energy assets, Duet (Diversified Utility and Energy Trusts).

A Duet spokeswoman said the company did not comment on "market speculation".

The fund has yet to make any investments in New Zealand since listing in Australia last year.

It does, however, say it wants to invest in energy assets on this side of the Tasman.

News of the trust investigating float alternatives, first reported in the Weekend Herald, has triggered a fall in the popularity of its corporate bonds.

Direct Broking director David Speight said the news had "definitely had an impact".

The previous price premium that was in the market before, based on the expectation of a float, was not there.