Carl Blanchard of First NZ Capital and David Flacks of Bell Gully appointed.

Horizon Energy has expressed its frustration at an expensive takeover dispute with Marlborough Lines.

Marlborough will take the Takeovers Panel and Horizon Energy to the High Court today to try and overturn costs awarded against it after a failed 51% takeover bid in September 2009.

The bid was blocked by 77.3% shareholder Eastern Bay Energy Trust, which has indicated it would like to move to 100% ownership to ensure local control.

Marlborough Lines is taking the Takeovers Panel and Horizon Energy to the High Court to try and overturn costs awarded against it after last September’s failed takeover bid.

Marlborough Lines chair David Dew told NBR that he found the Takeovers Panel decision to award costs against Marlborough “absolutely bizarre.”

The Takeovers Panel has determined that Whakatane-based Horizon Energy Developments breached the takeovers code on one issue and did not breach it on two issues raised by failed bidder Marlborough Lines.

The panel said it did not intend to take any further action in relation to Marlborough Lines' complaints other than to make orders on costs.

Marlborough Lines bid for 51% of Horizon Energy at $3.96 a share last September. It did not own any shares in Horizon at the time and Eastern Bay Energy Trust owned 77.295 of the shares.

Marlborough Lines has asked the Takeovers Panel to look into its failed partial takeover bid for Horizon Energy last year, with several allegations Eastern Bay Trust-owned company Horizon breached the Takeovers Code.

The panel received a formal request from the lines company’s lawyers, Radich Law, to investigate several allegations about NZX-listed (NZX: HED) Horizon Energy.

The Takeovers Panel is looking at changing its rules regarding takeovers of parent companies with significant New Zealand subsidiaries.

The problems with the status quo were illustrated last year when BG announced its plan to bid for Origin Energy in Australia, majority shareholder of Contact Energy: no one knew whether BG would look to sell down its Contact stake if successful; launch a takeover bid for the remaining Contact shares; or apply for an exemption so it didn’t have to do either.