Thursday 4th March 2010
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A third company in portfolios run by Fisher Funds is now under a takeover bid, helping to boost returns.
Three of Fisher's funds, the International Growth Fund, the KiwiSaver Growth Scheme, and listed investment company Marlin Global, hold shares in US listed OSI Pharmaceuticals.
OSI Pharmaceutical has received an unsolicited bid from Astellas, a Japanese pharmaceutical company of US$3.5billion, or US$52 per share, which is a more than 40% premium to the current market price.
However, the stock closed yesterday above the takeover price, at US$56 per share.
"There are other parties, such as Roche, who have an interest in acquiring the company. Astellas has been pursuing OSI for more than a year now. The price appreciation underscores the value in the franchise" Fisher Funds Senior Portfolio Manager Ken Applegate says.
"We believe that merger and acquisition activity will be a significant contributor to investment returns during the 2010 year. The global financial crisis saw companies hunker down and tidy up balance sheets, to the extent that many are now well placed to consider growth through acquisition."
In January the same three funds benefited from a 37% premium when the management of Chinese shoe retailer Hongguo acquired the company while Shiseido's acquisition of US company Bare Escentuals also brought a 40% premium to the funds a few days earlier in the same month.
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