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:
MARKET CLOSE: NZ shares rise on a2 bounceback; Tower, Genesis attract investors
NZ dollar largely unchanged this week as investors eye up central bank reviews
Scentre Group agrees to sell three Westfield malls to NZ firms for $549 million
Pulse Energy investors get mixed messages on board's takeover view
Court protection sought for late-comers to James Hardie leaky homes class action
Beef, pig and deer farmers to face stream-fencing requirements
Fonterra says farmer loan support package will cost $390 million
Bath Street Capital files counter-claim against Pyne Gould Corp
Silver Fern Farms paid former CEO Keith Cooper more than $1.8M in 2015