Opposition parties and electricity industry experts are warning uncertainty over water ownership will drive down the value of the energy companies the Government is going to partially privatise.
The Maori Council is seeking a finding from the Waitangi Tribunal that the share sales should be put on hold until water ownership claims are resolved.
It is confident the tribunal will find in its favour, and is going to use that to seek a High Court injunction.
Green Party co-leader Russel Norman says taxpayers stand to lose hundreds of millions of dollars if the Government goes ahead and sells 49 percent of the shares in Mighty River Power, Genesis Energy, Meridian Energy and coal miner Solid Energy.
"Any investor with an ounce of sense is going to demand a hefty risk discount before investing in these companies with so much uncertainty swirling around their water rights," he said today.
"The Government shouldn't proceed... there's a risk of our strategic energy assets being sold at bargain basement prices."
Independent electricity industry consultant Brian Cox told the tribunal yesterday Maori water ownership claims would create uncertainty and drive down share prices, Fairfax reported.
Australian financial markets expert Philip Galloway said in his submission the right to use water was fundamental for companies using hydro generation and buyers would be sure to ask questions about ownership.
The Labour Party has also called on the Government to delay the sales.
Prime Minister John Key says no one owns water, and that isn't going to change, but he has acknowledged court action could delay the first sale.
Shares in Mighty River Power are due to be floated late next month or in September.
NZN