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%.
No comments yet
NZ shares rise; F&P Healthcare helped by weak dollar, Ryman, Arvida fall
NZ dollar heading for weekly drop of 2.5% on uncertainty over new govt
Ardern promises proactive govt, regional support as she names Labour Cabinet members
ComCom right to reject media merger, court hears
Auckland Airport infrastructure spend to come under microscope in ComCom review
SkyCity runs ruler over Darwin after 'tough year'
NZ dollar, stocks drop as 3-way government replaces certainty of 3 terms of National
NZ annual net migration continues to cool in September as more Kiwis eye exit
October 20th Morning Report
Metlifecare buys waterfront land in Auckland's Hobsonville for new $240M village