FMA Bill reappears more balanced

This article was first published in the Otago Daily Times on 4 March 2011.

The Financial Markets (Regulators and KiwiSaver) Bill emerged from the select committee a more balanced and effective piece of legislation, Chapman Tripp partner Roger Wallis said yesterday.

"The committee has pulled some of the teeth the original Bill gave the Financial Markets Authority [FMA] but has sharpened the FMA's bite in other areas - particularly in relation to unsolicited low-ball offers."

The issue of low-ball offers came to light over the Christmas period when Bernard Whimp approached shareholders in seven major NZX-listed companies with offers well below market value.

Shareholders in Fletcher Building, Telecom, Nuplex Industries, Guinness Peat Group, Contact Energy, Fisher and Paykel Appliances and Vector were targeted by Mr Whimp, who offered as little as 50% of the shares' value.