TransAlta breached ad rules says trust

By Mark Reynolds

A Wellington community trust is claiming that TransAlta Canada breached advertising standards in promoting its takeover offer for the 33 per cent of TransAlta New Zealand it did not already own.

The Hutt Mana Energy Trust - a 12 per cent shareholder in TransAlta New Zealand - said the trust believed an inappropriate direct approach had been made to its beneficiaries by TransAlta Canada.

The trust alleges that newspaper advertisements by TransAlta Canada breached advertising standards by suggesting beneficiaries would get cash from the trust if the offer was accepted.

Trust chairman Chris Kirk-Burnnand said the advertising was misleading and it was important that the bid was independently appraised..

The trust has written to the Newspaper Publishers Association to have this allegation examined.

Mr Kirk-Burnnand said the trust was also concerned that TransAlta Canada might have accessed the customer base of TransAlta New Zealand for the purposes of communicating with the trust beneficiaries - although this allegation has been denied by TransAlta New Zealand.

The trust's concern stemmed from a mail campaign launched by TransAlta Canada to support its bid. The company had written to the trust's beneficiaries asking them to put pressure on the organisation to sell its shares and distribute cash to them.

The TransAlta Canada campaign is being organised by Wellington public relations firm Sue Wood & Associates.