List rules not breached by Air NZ

Air NZ did not breach listing rules when it downgraded its profit forecasts during last year's rights issue, says the Stock Exchange's market surveillance panel.

Shareholder complaints had prompted an investigation.

Two days before the $284 million issue closed in November and after bullish roadshows, Air NZ slashed its profit predictions, citing higher fuel costs and problems at Ansett Australia.

This was despite claims in the issue prospectus that it expected to do well in fiscal 2001.

The rights issue closed $19 million under target, with the shortfall picked up by underwriters.

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