Yes, the then NZ Labour government would not allow SQ to take a larger stake in ANZ. I am an Australian that has lived in NZ for many years, and I still can't understand why the National Party didn't make far more of a political fuss out of a decision that cost the NZ taxpayer very dearly indeed, and was a disgrace.
A SQ controlled ANZ with AN still surviving but restructured would have been a very potent competitor for QF indeed.
I have fond memories of AN, but many of the contributors to this thread are absolutely right that the rot started when ownership went into the hands of TNT/News