Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Fisher Funds to Reluctantly Vote for Merger Prop.

8 May 2006

Fisher Funds to Reluctantly Vote for Merger Proposal

Fisher Funds has a non-beneficial interest in 6.6m Waste Management shares, representing approximately 6.6% of the company.

After much contemplation, Fisher Funds advises that we will be reluctantly voting to approve the proposed amalgamation between Waste Management (WAM) and Transpacific Industries (TPI).

Since the proposal was announced, we have held a number of meetings with Directors and management of both WAM and TPI to discuss the proposed amalgamation. Fisher Funds remains perplexed and disappointed at the behaviour of the Waste Management Board over this period. A number of their decisions highlight our concerns:

1. WAM pulling out of Cleanaway bid process - as part of the amalgamation proposal the WAM Board agreed not to pursue the acquisition of Australian solid waste company, Cleanaway. Previously the opportunity of acquiring Cleanaway had been a key plank in WAM's Australian growth strategy.

2. WAM executives working on TPI's Cleanaway bid - in addition to pulling out of the Cleanaway bid process WAM took the extraordinary step of consulting to TPI, a competitor, in preparing its bid for Cleanaway.

3. Public comments - despite the amalgamation proposal being just that, a proposal yet to be approved, the company has made a number of negative comments in the media about the long term viability of the business. We believe that this is inappropriate behaviour from a major listed company.

Fisher Funds does not invest in companies where we do not fully support the Board and the key executives. We have carefully considered the operational and financial ramifications of the proposed merger not proceeding and are aware of the possible changes in the competitive landscape in NZ and Australian waste industries.

We believe the Board of WAM has effectively sidelined the company from its Australian expansion potential and we have concluded that the long term growth outlook for WAM has been compromised to the extent that we have no choice but to reluctantly approve the amalgamation proposal.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>


Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>

ALSO:

Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>

ALSO:

CO2 And Water: Fonterra's Environment Plans

Federated Farmers support Fonterra’s bold push to get to zero emissions of CO2 on the manufacturing side of the Co-operative, both in New Zealand and across its global network. More>>

ALSO:

Fisheries: Decision To Delay Monitoring ‘Fatally Flawed’

Conservation group representatives say a decision by the new Minister of Fisheries, Stuart Nash, to delay implementation of camera monitoring of fishing efforts in New Zealand is ‘fatally flawed’. More>>

ALSO:

Kaikōura Quakes: One Year On

State Highway One and the railway were blocked by damage and slips and the Inland Road suffered significant damage. Farms, homes and businesses suffered building and land damage. Power and internet went down, drinking water systems, sewage systems and local roads were all badly affected... More>>

ALSO:

 
 
 
 
 
 
 
 
  • Bill Bennett on Tech