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:
Heartland affirms FY guidance, sees consumer lending growth of up to 10%
Air NZ, PT Garuda Indonesia win Australian cartel case
Ebos 1Q trading up 10%, new CEO Davies says
Westland Milk Products proposes new investment share for its farmer shareholders
Ebos buys Australian BlackHawk pet food business for $57.8 mln
NZ building consents drop at fastest pace in more than 2 years in September
DNZ Property refinances $400 mln banking facility, extends maturity
ANZ New Zealand boosts FY profit 17% on home loan growth
OceanaGold Q3 profit falls on lower gold price; shares drop
Intueri charged over student death at NZ diving school