If the New Zealand share market is a Wild West, then the Sheriff is coming to town in the form of the Takeovers Code,
due to be implemented on July 1, Commerce Minister Paul Swain said today.
Mr Swain said the controversial takeover of Montana Wines by Lion Nathan was disappointing.
“The sort of thing that has been going on is a fiasco … It undermines the confidence of overseas investors,” he said.
Mr Swain said the previous National Government began work on a takeovers Code, but ran out of courage under pressure
from interest groups. “If it had proceeded as planned then we wouldn’t be in this position today,” he said.
“We have gone as fast as we possibly can, given the previous government had five years and did nothing.”
He said the new code would apply from July 1 on, too late to apply to the Montana deal.
The new takeovers code would have a clear set of rules about what would happen in a takeover situation, and would
encourage investment in the New Zealand stock exchange, he said.
“In the interests of the New Zealand market we are introducing this code,” he said.