By Chris Hutching
Friday 31st March 2000
|Text too small?|
Californian investor group Palo Alto has its eye on the jewel in DB's crown, its ownership of the Corbans wine business.
Asia Pacific Breweries' recent bid for all the capital of the company closed on Tuesday, lifting its stake from 66% to 73%.
Most broking houses had advised their clients to hold on to their shares in view of a PricewaterhouseCoopers report putting a fair market price at between $3.19 and $3.61 a share.
The report also warned in the absence of a competing bid the fizz would soon go out of the share price if the Asia Pacific offer fell flat.
But the emergence of a new San Francisco-based institutional shareholder, Palo Alto, may renew interest in the stock. It built up a 10% holding during the bid period, possibly explaining why the shares rose to nearly $2.90 a share at one stage.
Lower Hutt lawyer Nigel Moody of Gibson Scheat, acting for Palo Alto, obtained a statement from the company. Palo Alto says it has owned DB shares since 1996 because it is "unusually well managed for a company of its size (in part due to its association with Heineken).
No comments yet
NZ dollar weakens on global tensions, weak local manufacturing
General Capital (GEN:NZ) releases strong preliminary result
Burger Fuel turns to profit as it changes direction
Contact secures winter gas from OMV
Arrow International liquidators find $40M of notional assets
Forestry encroachment an issue for councils - Sage
NZSA concerned Kiwi Property paying too much in dividends
NZ food prices rise an annual 1.7% in May, rental inflation steady
Provincial centres lead the way in UFB uptake
Manufacturing grows at slowest pace in more than six years