Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


MRP brokers get commission doubled if shares sold offshore

Clayton Cosgrove
Spokesperson for SOEs

9 April 2013

MRP brokers get commission doubled if shares sold offshore

The Government’s three major brokers will get their commission doubled if they sell shares to overseas investment companies rather than New Zealand institutions, says Labour’s SOE spokesperson Clayton Cosgrove.

The Mighty River Power share offer document says the joint lead managers, Goldman Sachs, Macquarie and First NZ Capital, will get 0.4 per cent commission for selling shares to New Zealand institutional investors but get 0.8 per cent commission for share sales to overseas institutional investors.

Clayton Cosgrove says: “National keeps telling us they’re putting New Zealanders at the head of the queue. As usual it looks like they’re being economical with the truth.

“The three priority brokers will get twice the commission if they sell shares to overseas investors rather than New Zealand institutions.

“The brokers at Goldman Sachs, Macquarie and First NZ Capital aren’t stupid. They will put all their effort into selling the shares offshore so they can double their return.

“John Key has assured New Zealanders that 70 per cent of Mighty River Power shares will remain in New Zealand hands. But we now find out he’s providing double the incentive for brokers to sell shares offshore.

“With the massive risks surrounding the sale becoming apparent with Tiwai Point, the Government is worried that Kiwis will run scared. National’s sole concern is getting a good price for the sale, that’s why they’re encouraging brokers to sell more shares overseas to keep the price up. That puts more shares in foreign hands.

“We all know that eventually most of these shares will end up overseas. The Government’s nonsensical policy appears designed to hasten that outcome,” says Clayton Cosgrove.


Click for big version.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Parliament Today:

Werewolf: The Defence Pretence

Last year, the world began spending more money on weapons again, for the first time since 2011... New Zealand belongs to a region – Asia and Oceania – where military spending rose sharply in 2015, by 5.4 per cent. More>>

ALSO:

Gordon Campbell: On Not Crying Foul, Argentina

So a couple of guys found to be criminally liable of environmental pollution in Argentina lodge an application with the Overseas Investment Office… in order to buy some prime New Zealand rural land. Seems that their factory back home had carelessly and/or intentionally discharged toxic waste into the Lujan river. Bummer... More>>

ALSO:

Urban & Rural: $303m To Merge And Modernise New Zealand’s Fire Services

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017. More>>

ALSO:

High Trust Regime: What Did The PM Tell His Lawyer About Foreign Trusts?

The Government stopped the IRD from reviewing New Zealand foreign trusts shortly after the Prime Minister’s lawyer wrote to the Revenue Minister claiming John Key had promised him the regime would not be changed. More>>

ALSO:

Road Crime: Wicked Campers Vans Classified As Objectionable

The definition of publication includes any "thing that has printed or impressed upon it, or otherwise shown upon it, 1 or more (or a combination of 1 or more) images, representations, signs, statements, or words", The Classification Office has previously classified such 'things' as billboards, t-shirts, and even a drink can. This is the first time the Classification Office has classified a vehicle. More>>

ALSO:

'When New' Repairs: Landmark EQC Settlement

The Earthquake Commission has cut a deal with 98 Canterbury homeowners that affirms the government entity's responsibility to repair earthquake-damaged property to a 'when new' state, as well as covering repairs for undamaged parts of a property and clarifying its position on cash settlement calculations. More>>

ALSO:

Gordon Campbell: On Kiwirail’s Latest Stint In The Dogbox

The denigration of Kiwirail continues. The latest review (based on a 2014 assessment) of the options facing the company have enabled Kiwirail to be hung out to dry once again as a liability and burden on the taxpayer. More>>

ALSO:

Royal Society Report: Good Opportunities To Act Now On Climate Change

There are many actions New Zealand can and should take now to reduce the threat of climate change and transition to a low-carbon economy, a report released today by the Royal Society of New Zealand finds... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news