It is absolutely essential for National that lots of ordinary Kiwis buy Mighty River shares. They’ve staked their whole reputation on it. To that end, they’ve fostered a belief that the shares will be a licence to print money.
That was never the case – in fact, at the share price offered, it’s a low return company. Tiwai and NZ Power only add to the negatives of Mighty River as an investment.
Yet, as Rod Oram found, there’s no independent advice available to ‘mum and dad’ on the size of the risks. Why is it so hard to find that advice? National must have such advice and so must the big firms they’ve contracted for the sale.
But that advice is being kept from the public and all we’re hearing is them beating the ‘buy, buy, buy’ drum – because they have a financial and political interest in Kiwis blindly paying their money down, and they don’t care if ‘mum and dad’ come a cropper later.
Update: See also:
MRP refuses to release engineer’s report
Mighty River Power refuses to divulge a full engineer’s report into its power generation assets.
The state-owned power company, which is being partially privatised, included a summary of the Beca report in its prospectus and investment statement.
But MRP says the full report “is not publicly available, pursuant to our agreement with Beca”.
Why aren’t potential investors getting all the facts? Why not release the report?