Friday 14th April 2000
|Text too small?|
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
No comments yet
MARKET CLOSE: NZ shares rise, Xero and Meridian gain while Air NZ drops
NZ dollar in biggest fall against greenback since November
Warehouse hires NZ Baycorp boss Donna Cooper to run finance unit
Management friction, unpaid bills sink promising pre-fab housing builder ABT in Auckland
Treasury wary of more major projects in November update
Xero chairman Chris Liddell resigns to take Trump job, director Graham Smith takes over
Macquarie still upbeat on retirement village sector, consents up in November
NZ consumer sentiment rises in January to highest since April 2015
Australian's Bega buys rights to Vegemite, Kraft brands from Mondelez for A$460M
New Zealand residential building consents slide in November after quake