90 seconds at 9am: Sheppard calls for statutory manager for Hanover; 'NZ$67 bln of oil offshore'; Weak US housing starts

90 seconds at 9am: Sheppard calls for statutory manager for Hanover; 'NZ$67 bln of oil offshore'; Weak US housing starts

Watch video on YouTube here. Watch video on our video page here. Bernard Hickey details the key news overnight in 90 seconds at 9am in association with ASB, including reaction to Allied Farmer's deal to buy Hanover. The deal means Hanover investors would swap their debt for 900 million shares in Allied Farmers. If the share price stayed up it might be worth NZ$400 mln, but the history on these debt for equity swaps is not good. Just ask Geneva Finance shareholders who took shares said to be worth 36 cents for 15% of their debt and now have share worth less than 9 cents and difficult to sell in an illiquid market. Meanwhile, Bruce Sheppard is calling on the government to put a statutory manager inside Hanover Finance because he says bond holders are 'too dumb' to do the right thing. Brian Gaynor is also sceptical in this report from the NZHerald. Meanwhile, GNS Sciences is estimating New Zealand has NZ$67 billion of undiscovered oil sitting under ground off our coast, Stuff reported. In the United States overnight there was news that housing starts were weaker than expected in October and and the Dow fell, Reuters reported.

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