Takeovers boost NZ sharemarket
Thu, 12 Jul 2012 7:54p.m.
The New Zealand share market rose on Thursday as merger and acquisition activity lifted Guinness Peat Group and Telstra.
The NZX 50 Index rose 22.55 points, or 0.6 percent, to 3501.39. Within the index, 25 stocks rose, 15 fell and 10 were unchanged. Turnover was $90 million.
Shares in GPG rose 2.2 percent to 46 cents after it rejected an AU$220 million (NZ$282.5m) full takeover bid for ClearView Wealth, the investment firm's second-biggest asset, saying the price was "wholly inadequate."
"I guess it's a sign that a few of its assets are in reasonable demand," said James Smalley, client adviser at Hamilton Hindin Greene.
"It will be interesting to see if the bidder pays a bit more."
Tower, the insurance and wealth management firm, gained 0.7 percent to $1.58 following a disclosure by GPG earlier in the week that its holding had slipped to 33.6 percent from 34.99 percent. Guinness Peat is looking to exit its holding.
Telstra shares, which are listed in New Zealand and Australia, rose 0.8 percent to $4.97 in local trading.
Vodafone has agreed to buy Telstra's New Zealand business, TelstraClear, for $840 million, giving the British company a stronger base from which to challenge Telecom.
"In telcos it is often a question of economies of scale and that is obviously what Vodafone is looking to do," Mr Smalley said.
"I guess it does make sense - Telstra has been in New Zealand for some time and it hasn't worked."
Telecom rose 2.2 percent to $2.58.
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