In an apparent change of heart US investment giant Franklin Resources has splashed out on a 5% stake in Telecom, worth $823 million at Wednesday's closing price.
In recent months Franklin, in company with other overseas institutions, has been selling down its New Zealand holdings. It has cut stakes in Fletcher Challenge stocks, Brierley Investments and Air New Zealand.
The group could not be reached for comment but it is possible at least some of the money realised from the sales has been reinvested in Telecom.
The 5% threshold, which triggers a requirement to file a substantial security holder notice, was breached on Wednesday.
ABN Amro analyst Jeremy Simpson said he was not privy to Franklin's reasoning "but there appears to be increased interest in New Zealand and in Telecom in particular. It's been doing a lot of roadshows overseas."
Another US investor, Brandes Investment Partners of San Diego, disclosed a 5.2% Telecom holding in January. Late last month it lifted the stake to 6.2%.
Telecom's share price has been falling heavily in recent days in response to the decline of the technology-heavy US Nasdaq index.
Franklin this week sold a further 1% of Brierley, reducing its stake to 4.43%. Camerlin Group, the vehicle of Malaysian tycoon Quek Leng Chan, lifted its BIL holding from 20% to 24.4%.
- Nick Stride
Comments from our readers
No comments yet
Add your comment:
NZ dollar heads for 1.4 percent weekly gain vs. A$ on divergent economies; US jobs data loom
FMA almost done in settlement with Strategic Finance directors, receiver chasing BDO
Supreme Court tosses out Gull appeal over $23 mln butane blending duty
Bank of New York Mellon trims holding in embattled Chorus
Chatham Rock granted mining permit for Chatham rise, still needs EPA sign-off
NZ govt operating deficit smaller than forecast on higher personal tax take, customs duties
Regulator seeks industry views on Chorus line price, suggests speedier process, backdating final price
RBNZ commitment to inflation target crucial for believable guidance, Bascand says
While you were sleeping Strong US GDP, jobs
NZ dollar holds near 5-year high vs. Australian dollar on interest rate paths