The Eastern Bay Energy Trust is urging Horizon Energy minority shareholders to reject the share offer from Marlborough Lines.
First NZ Capital is standing in the market to buy 10.1 per cent of Whakatane-based Horizon on behalf of Marlborough Lines.
Horizon Energy is 77.3 per cent owned by the trust
so the stand is for nearly half of the shares remaining, mostly held by retail investors.
The stand in the market commenced at 10.45am yesterday and is at $4.15 per share. From tomorrow, the price becomes $4.06 per Horizon Energy share because a nine cents a share dividend is no longer payable.
The company's share price rose 79c, or 23 per cent, to $4.16 yesterday.
Brokers said a line of 220,000 shares went through the market yesterday morning and this was likely to be ACC selling its holding.
Trust deputy chairman Kevin Hennessy said the offer was a spoiling bid that is purely aimed at the trust not being able to achieve 100 per cent local ownership of what is a strategic local infrastructure asset.
"We think that local shareholders at least understand the importance to the Eastern Bay area of full local control and the retention of local jobs."
Hennessy said it was significant that notice of the Marlborough offer was being made when the trust's own bid had been suspended while a High Court ruling on matters related to that process was being sought.
"The Marlborough move is opportunistic action by outside interests to interfere in local business to the potential detriment of the local community," he said.
Marlborough Lines confirmed in a statement that it was behind the stand in the market, which will cost it in the order of $10 million, if successful.
Horizon Energy supplies about 24,000 customers.
It made an audited net profit after tax of $5.9 million for the year ended March 31.
