About Us  |   Advertise  |   Contact Us  |   Terms & Conditions  |   RSS Feeds
 
Open account with Equity Investment Advisers
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

New Mega constitution paves way for listing after backdoor route closed
NZX milk powder futures suggest dairy prices will extend slide at next week's GDT auction
NZ govt surplus widens in 11 months on company, PIE tax inflows; delayed education spend
OceanaGold sees more life in Macraes goldfield
NZ dollar touches fresh five-year low as commodity prices drop
While you were sleeping: Wall Street recovers
Craig Norgate, former Fonterra CEO, dies in UK, media reports say
MARKET CLOSE: NZ shares rise after selloff; Summerset gains on guidance
New 2030 greenhouse gas emissions target far weaker than 2020 goal: climate change expert
Pyne Gould to restate 2014 accounts with lower profit, assets after Torchlight audit

 
Previous News
Bond
News Alerts
Breaking News (Up to 10 Emails a day) 
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 2015 MoneyOnline Ltd & Investment Research Group Ltd. All Rights Reserved.