Battle looms over Fisher & Paykel
Mon, 10 Sep 2012 6:07p.m.
By Tony Field
A takeover battle could be looming for one of New Zealand’s best known companies.
Chinese company Haier says it's considering a full takeover of Fisher & Paykel Appliances. That move has pushed up shares in the New Zealand company by over 25 percent.
Haier already owns 20 percent of F&P appliances, but now the electronics and appliance maker wants an even bigger stake.
F&Pl chairman Keith Turner says he expects them to make an offer.
“They have not made a takeover offer yet, but we know they have been in discussions with some of our largest shareholders, which signals they appear to have the intention of making an offer.”
Those major investors include Australian fund manager Orbis, ACC and AMP Capital Investors.
Brian Gaynor, Milford Asset Management investment committee chairman, says it’s likely the investors will wait to see if any competing bids emerge.
“I hope we have a fight on our hands. I think we need to fight for our New Zealand companies quite strongly, I think there will be quite a lot of opposition to it.”
Haier bought into F&P appliances three years ago, after the New Zealand company was battered by the global recession.
One year later Haier executives proudly toured the Auckland factory with China's vice president.
Its investment has started to pay off, with F&P shares climbing higher and higher in recent months. The share price had gained over 100 percent from the start of the year to the close of trading on Friday.
And they surged as much as 40 percent today, before easing back. A formal offer is expected this week.
Haier's stake in F&P appliances gives it two seats on the board, but it doesn't give it full access to the company's technology and its research and development.
But full control would.
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11/09/2012 4:40:28 p.m.
Yeah but the other option was F&P ceased to exist 3 years ago! Yes, How naive are we, we want it all here in NZ and are all too happy to moan and groan when its going to be taken away through no fault of others except our own!
10/09/2012 9:11:10 p.m.
Bye bye Fisher & Paykel. They will buy the technology and then move all production offshore. Good bye jobs, technological development and wealth. We are quite naive in certain respects.
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