“John Key’s asset sales have descended from failure to farce” – that’s how Metiria Turei described the announcement that Mighty River Power will be buying back shares just five months after they were privatised. Clayton Cosgrove put it more bluntly: “It’s a good thing the government doesn’t own a brewery cos they couldn’t organise a pi .. a DRINK in one”.
What a cock-up the whole process has been. The sales costs have blown out to $124m and are set to at least double. Less than half the ‘mum and dads’ they expected showed up. They got less money than they expected for Mighty River (and now, wise after the fact, the analysts all claim it was over-priced).
Now, these shares that were supposedly all about helping Kiwis get diversified savings are being bought back by the company in a transparent attempt by the MRP board to try to revive its ailing share price, which is about to come under even more pressure with the fire-sale of Meridian.
If they get out now, the average ‘mum and dad’ will have lost a grand. And I reckon plenty of them will get out while the getting is good.
I’m really looking for to the referendum. Key’s said he’ll put the ‘no’ vote against the number of people who voted National in 2011 (most of whom, incidentally, opposed asset sales). It’s going to be great when New Zealanders get ot give him an arse-kicking over these stupid asset sales.