
Nick McDonald: Mighty River and owning shares
Nick McDonald on a few things to consider before investing in Mighty River shares.
Nick McDonald on a few things to consider before investing in Mighty River shares.
The past few years have seen some successful floats in New Zealand - notably Summerset, Trade Me and the Fonterra Shareholders' Fund.
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A major oil and gas conference starting today will hear from a former United States prosecutor selected by the Obama Administration to beef up offshore drilling rules.
The political machinations around the electricity sector have definitely added an element of higher risk to the Mighty River Power float making it even harder for retail investors to make a call on buying into the soon-to-be-listed power company.
Both opposition parties will be hoping enough potential investors turn off the pending float so they can declare it a disaster, writes Fran O'Sullivan.
Investors should still consider buying into the Mighty River Power float despite the increased regulatory risk from Labour's proposed shake-up of the electricity market, according to one analyst.
Labour says its plan to bring down power prices is affordable despite losing out on state-owned power company dividends.
Uncertainty created by the Labour Party and Greens' plans for the electricity market helped drive the share prices of the main NZX-listed power generators sharply down yesterday.
The Government says it won't be able to say how many people have applied to buy shares in Mighty River Power until after the offer period has closed.
The proof will be in the pudding for the Government next week as the Mighty River Power share offer officially opens to the public on Monday. It's hard to know how many of the 440,000 people who pre-registered will buy shares.
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I can't get excited about the Mighty River share float either as an investor or as an economist, writes Peter Lyons. NZers are being given a chance to buy shares in businesses that all of us already own.