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Source: Reuters
The Takeovers Panel is investigating electricity network company Horizon Energy Distribution following a request by Marlborough Lines Ltd, which failed in an attempted takeover in September.
The panel says Horizon may have contravened a section of the Takeovers Code which prohibits misleading or deceptive conduct.
It will investigate two of the large number of allegations by Marlborough Lines.
The panel will consider Horizon's decision to issue a revised profit outlook in September if there was no reasonable basis for issuing the revision.
Also under investigation will be Horizon directors' decision to state in the target company statement that the valuation range of $3.96 to $4.68 per share did not reflect Horizon's full value, if they had no reasonable basis to make that statement.
Marlborough Lines' offer was at the bottom of the valuation range.
The panel will hold private meetings in Wellington on Friday and Tuesday to consider the allegations.
Horizon is 77.3% owned by the Eastern Bay Energy Trust, whose minority shareholders blocked an attempt last month to buy the remaining shares.
