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, led by Arvida as upbeat earnings buoy investors
NZ dollar slips below 70 US cents
Plant & Food Research-Anagenix tie up on the verge of reaping benefits
Air New Zealand passenger numbers rise in April
Unite Union makes headway in talks with Restaurant Brands
SSC to probe Transport Ministry's treatment of whistleblowers
FMA licenses 201 firms under new securities law regime
NZ goods exports hit an April record as dairy prices continue to rise
Mixed blessings for Contact Energy from low southern hydro lakes
Arvida, on expansion drive, more than doubles annual profit