PM plus 100,000 back sale of Snowy - Business - Business - smh.com.au

CLOSE to 100,000 people have already registered their interest in the $3 billion-plus float of Snowy Hydro, despite growing opposition to the sale from interest groups and politicians.
Prime Minister John Howard was forced yesterday to defend the Government's decision to sell its 13 per cent stake in the Snowy, claiming it would be better run by private owners.
Mr Howard also dismissed concerns about the legality of the sale and rejected calls for another parliamentary debate on the issue.
Snowy Hydro is owned 58 per cent by the NSW Government and 29 per cent by Victoria.
"I understand the concerns that have been expressed and I acknowledge that this is probably an issue where, on the surface, a majority of public opinion would oppose what is being done by the three governments," Mr Howard said.
"I think the legal basis for what we're doing is pretty sound and I'm not disposed, and the Government's not disposed, to change our position."
A nationwide advertising campaign was launched this week calling on shareholders to pre-register for a prospectus and it is understood that the response has been better than expected, given the political debate which is raging in the background. Research analysts will brief fund managers on the offer next week and a prospectus should be lodged by the middle of June.
But the political sideshow is expected to be a distraction for investors.
Three independent MPs - Tony Windsor, Peter Andren and Bob Katter - said yesterday they were planning to force a parliamentary debate on the issue next week and Liberal Party senator Bill Heffernan has raised concerns about the asset falling into foreign hands. He is calling for stronger safeguards to ensure that won't happen.
So far, the governments have committed to setting a 10 per cent limit on individual shareholdings for four years. After that, the cap will be voted on periodically. The preference of the Australian Stock Exchange is that a simple majority (50 per cent plus one) could remove the cap but no final decisions have been made.
The three governments have also said that Snowy's head office, two-thirds of its directors and the bulk of its operations will stay in Australia for at least four years. After that, 75 per cent of shareholders would have to vote to remove the so-called "protections".
Some involved in the Snowy sale process expressed surprise at Mr Heffernan's objections.
He abstained from voting on the issue in March and voted against an amendment proposed by Labor's Nick Sherry requiring the Government to report back in five years to ensure it lived up to certain commitments regarding the Snowy.
Those included better maintenance and upgrades of equipment, an increase in local employment, and environmental obligations.