Twice recently SkyCity Entertainment Group has fallen foul of the New Zealand Exchange regulations. Share trading was halted yesterday for around a quarter-of-an-hour following market rumours that the company was trading on an uninformed basis. This followed remarks in the press by SkyCity Chairman Rod McGeoch that a second bid for the company was expected. The NZX decided that there was no case to answer and the shares were reinstated.

SkyCity was also criticised when it originally disclosed, on 21 September, that it had been approached about a possible takeover. This was revealed in a third paragraph statement to the NZX, and was said by the company to be an unintentional mistake. The first offer made is widely thought to have come from private equity firm TPG Newbridge.

Despite the possible takeover, SkyCity is pursuing a programme of asset sales that includes its casino in Adelaide, Australia. The company said that it would probably return some cash to shareholders if the property is sold. The Auckland casino, the company flagship, reported disappointing interim results for the financial year, which led to the reassessment of various properties and the departure of MD Evan Davies. (E-10.16.07)

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