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 gain; A2, Fletcher, TeamTalk rise, Metro Glass, Infratil fall
NZ dollar slips vs Aussie as commodity prices rise; gains vs pound on Brexit
Russia willing to re-start NZ free-trade talks frozen over Crimea conflict
Ryman gets approval for second Melbourne village
Māori rights at stake from Kermadec ocean sanctuary, iwi leader says
NZ companies lift spending on R&D but still lag behind OECD average
Rejecting NZME, Fairfax merger on plurality grounds 'illogical and incomplete'
Synlait posts 3.8% gain in 1H profit, expects 'modest' full-year earnings growth
Future Mobility Solutions says Malaysia makes order for 23 amphibious craft
Infratil sees flat earnings in 2018, still hungry for investments