About Us  |   Advertise  |   Contact Us  |   Terms & Conditions  |   RSS Feeds
 
Support our sponsors:
sharemarket

Fletcher shareholders have their say

By Nick Stride

Friday 3rd November 2000

Text too small?
At press-time shareholders in Fletcher Challenge were poised to approve the $427 million Forests division rights issue at a drawn-out annual meeting.

The meeting was delayed by a power blowout but once it got under way directors were bombarded with questions by holders of all three remaining divisions - Energy, Building and Forests . But the weight of institutional proxy votes was expected to carry the day.

The vote will free FCL to press ahead with its plans to dissolve the letter stock structure and sell Energy to Royal Dutch/Shell and Apache Energy, leaving Building and a recapitalised Forests as separate companies.

Brokers say the rights, which begin trading later this month, will effectively be worthless.

One speculated FCL's partner in Central North Island Forests, China's Citic, could be tempted to gain a stake in Forests by buying up cheap rights. That would give it leverage in its protracted dispute with FCL over the partnership's management.

The breakup plan still faces the hurdle of securing Commerce Commission clearance for the Energy sale. FCL has said the Forests recapitalisation is not dependent on the proposed deal going ahead.

The commission turned down Shell's initial application and will rule on the revised version by November 17.



Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.
Bookmark and Share   Printable version
Related News

Power companies face ban on
Cavalier and NZ Wool Services to merge wool scouring businesses
Hellaby expects to complete at least one acquisition this year
Airwork sees annual profit growth of 48%, expects 1H to beat prospectus
Fletcher Building ups earnings through trebling house builds, trialling social housing
Fletcher aims to triple pace of home building in NZ as demand grows, Adamson says
NZ, South Korea free-trade agreement looks imminent
Fletcher Building sees FY earnings $650M-$690M on second-half rebound
ASX-listed Empired buys Intergen for A$17.4 mln in cash and shares
NZ net migration rises to annual record in September on increased numbers from India, Australia

 
Previous News
Bond
Bond
News Alerts
Breaking News 
After the Bell (daily) 
Gold News 

Unsubscribe/Update »

RSS feeds »
Twitter »
Facebook »

Most Commented On
  forex centre
cfd centre
options centre
NZX 15 Index
   





© Copyright 2014 MoneyOnline Ltd & Investment Research Group Ltd. All Rights Reserved.