By Nick Stride
Friday 16th November 2001 |
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GARY PAYKEL: Rejected criticism |
F&P Healthcare American Depositary Shares finished Wednesday's Nasdaq market trading at $US26.05, a gain of 44.7% on the $US18 at which they were sold to US and other institutions on Tuesday.
F&P chief executive Gary Paykel earlier this month rejected criticism from institutional shareholders and sharebroking analysts that the $US16-18 an ADS "indicative price" it had set for the sale of 17.6 million Healthcare shares was far too low.
At $US26.05 the shares sold had gained $35 million ($83.5 million) in value in two days.
Arcus Investment Management's Simon Botherway said the sale, as predicted, had resulted in "a massive value transfer from Australasian investors to North American investors. I can assure you I'm not the only person who's extremely unhappy with this."
Fund managers Alliance Capital, BT Funds Management and New Zealand Funds Management and sharebroker Credit Suisse First Boston had also warned the float was too cheaply priced.
Healthcare shares were trading on the local market today at $15.70, up from the $10.95 at which the float price valued them.
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