In an apparent change of heart US investment giant Franklin Resources has splashed out on a 5% stake in Telecom, worth $823 million at Wednesday's closing price.
In recent months Franklin, in company with other overseas institutions, has been selling down its New Zealand holdings. It has cut stakes in Fletcher Challenge stocks, Brierley Investments and Air New Zealand.
The group could not be reached for comment but it is possible at least some of the money realised from the sales has been reinvested in Telecom.
The 5% threshold, which triggers a requirement to file a substantial security holder notice, was breached on Wednesday.
ABN Amro analyst Jeremy Simpson said he was not privy to Franklin's reasoning "but there appears to be increased interest in New Zealand and in Telecom in particular. It's been doing a lot of roadshows overseas."
Another US investor, Brandes Investment Partners of San Diego, disclosed a 5.2% Telecom holding in January. Late last month it lifted the stake to 6.2%.
Telecom's share price has been falling heavily in recent days in response to the decline of the technology-heavy US Nasdaq index.
Franklin this week sold a further 1% of Brierley, reducing its stake to 4.43%. Camerlin Group, the vehicle of Malaysian tycoon Quek Leng Chan, lifted its BIL holding from 20% to 24.4%.
- Nick Stride
Comments from our readers
No comments yet
Add your comment:
TPP negotiations set to accelerate after Obama gains fast track powers, Groser says
Briscoe builds 19.9% stake in Kathmandu, plans full cash and scrip takeover
Eastern Bay Energy Trust declares Horizon takeover unconditional
Wellington Airport returns through 2019 within acceptable range, regulator confirms
KordaMentha concludes receivership of Somers-Edgar's Orange Finance with $10M shortfall
Xero appoints Virgin Australia's Sankar Narayan as chief financial officer
NZ dollar recovers after knee-jerk decline on Greece concerns
While you were sleeping: Greece closer to exit
MARKET CLOSE: NZ shares join global selloff by investors rattled by Greek debt impasse
Foreign social housing providers would be cash-flow positive for NZ, PM Key says