The Mighty River Power float closes at 5pm today.
An experienced investor told me he’d written to David Shearer and Russel Norman thanking them.
Their power play was likely to depress the price so he’d get more shares.
Potential investors may now hold back because of confusion about the future of the power industry, uncertainty whether MRP will stag at a higher price and a fear the price will go down upon listing.
The lack of take up will dampen the listing price, which is more likely to be at the lower end of the scale, around $2.25 rather than the expected $2.80.
The Greens and Labour may have scored political points, but effectively they have slashed the government’s cash investment to fund health, education and infrastructure programmes. . .
So who pays the price for the opposition’s political gain? Every Kiwi, even those they claim to champion.
Professional and institutional investors will not be daunted by any of this and are making big offers, but with fewer “mum and dad” buyers they may not have to go to the market for as many shares when they are listed on May 10. . .
The investor I spoke to said much the same thing.
The LabourGreen power play was putting off first-time and small investors who had been planning to dip their toes in the water but now have cold feet.
The Hey Clint clip shows that Green MP Gareth Hughes thinks it’s funny. But Patrick Gower points out it’s not:
Now I know a lot of people watch “Hey Clint!” and find it funny.
But to me it showed much more than a bit of humour. It showed what we know – the Greens, like Labour, are trying to act like they are not gleeful that the policy is screwing with the MRP float.
In fact, it looked like Gareth Hughes was stoked. It was in the public interest to run it. No question.
It busted spin, in fact, it blew the spin apart.
It showed that the Greens, like Labour, are trying to come up with ‘lines’ to pretend that it’s not about wrecking the float.
And that’s fair enough; the Greens want to emphasise what they see as the good parts of the policy.
But, thanks to Gareth’s indiscretion, we could show what they really feel. . .
Putting politics before people isn’t the picture LabourGreen wish to portray.
They forgot that what’s good for the economy is good for people and their power play isn’t.
They can’t win on this one.
Support the policy or not, it’s in New Zealand’s best interest for the shares to sell for the best price.
If the float goes well their many attempts – most at the public’s expense – to counter the policy will have failed.
If it doesn’t, they’ll have cost the country millions of dollars.
Either way, they lose.