Stop the takeover campaign launched
A senior sharebroker so opposed to a merger of the New Zealand and Australian Stock Exchanges, has launched a "Stop the Takeover" campaign.
Wednesday, December 20th 2000, 7:00AM
The war over control of the New Zealand Stock Exchange is heating up with the establishment, yesteday, of a group opposed to a merger with the Australian Exchange.
Senior broker and the newly appointed head of Macquarie New Zealand, Ian Waddell, has established "Stop the Takeover Campaign" to fight against the proposed merger of the two exchanges.
Waddell describes the proposed merger as a takeover.
He says the amalgamation of the two exchanges will "hurt New Zealand and New Zealanders in the long term."
The main arguments against the merger are that:
- New Zealand will lose sovereignty over a core component of its capital markets
- Compliance costs will be higher, and that will hit the base of New Zealand's economy, small and medium sized businesses
- A merger will see more talented people leaving New Zealand.
The battle over the NZSE's future looks to be hotting up. Previously, Wellington-based investment banker Lloyd Morrison launched a major attack against the merger, and Spicers manager Paul Glass has spoken against the idea. However, the Government appears divided on the issue.
Labour leaders, including Prime Minister Helen Clark and finance minister Michael Cullen, have expressed support for the merger, while Alliance leader and deputy Prime Minister, Jim Anderton, is reportedly less enthusiastic.
Good Returns understands that politicians and officials will have to get involved in the process. One senior regulator in Wellington says the issue of a merger "is too important to be left up to the exchange to decide."
Waddell outlines his case in the features section
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