Hutt trust stalls on TransAlta decision

By Richard Braddell

WELLINGTON - TransAlta Canada's $245 million offer for the third of TransAlta NZ it does not already own has gone unconditional after it waived a requirement that it get acceptances for at least 90 per cent. As of yesterday, the bid by TEC Investments had collected more than five million shares, equal to about 2 per cent of the company and taking TEC's holding to just short of 70 per cent.

However, the Hutt Mana Energy Trust, which owns 14.6 per cent, is still considering its position and does not expect make an announcement until the week the bid expires, on November 4.

The trust's chairman, Chris Kirk-Burnnand, said it had written to TransAlta's independent directors seeking answers to 10 questions raised by their report from Grant Samuel which has valued the company at $1.95 to $2.52 a share. TEC is offering $2.50 a share.

Mr Kirk-Burnnand said another report obtained by the trust would remain confidential because the trust did not want to expose itself to legal liability.

"We can see that there's some changes facing the company, but I think also with [chairman] Roderick Deane on board, you only have to look at the value he brought to Telecom as chief executive officer there."