Heavy demand for Elders shares

Press, 5 November 1984, Page 30

Heavy demand for Elders shares

PA Sydney A steady price rise in Elders-IXL scrip and consistent heavy buying has fuelled speculation on Australian sharemarkets during the past month about the identity of ’ likely purchasers.

Although Robert Holmes a’Court has been linked with purchases in the highly diversified Melbourne-based giant, the most recent ru- 1 mours concern the Singa-pore-based banking group, Oversea-Chinese Banking Corporation. The bank was a thorn in the side for Elders during its take-over of Carlton and United Breweries, but mar-

ket analysts believe that the bank sees Elders as a good investment because of its diversified pastoral, financial, brewing, and merchant interests. Oversea-Chinese held a substantial interest in Carlton and United and held out for a higher bid from Elders during the takeover which became effective on January 1. Spurred on by a record $72 million annual profit, announced on October 1, Elders shares have risen from around sAust4.oo in late September to close on Friday at $4.80 for a 5c gain after peaking at $4.95. The Melbourne broker,

Potter* Partners, has been responsible for a large percentage of the dealings in Elders, but analysts dismissed the notion of a takeover attempt on Elders. They said the Elders board would be capable of mustering enough friendly support to ward off an attack and that any company buying Elders shares would more likely be doing so for an investment

Many brokers, including Potters, have been bullish on Elders’ prospects recently, particularly after its 12 per cent profit rise in the face of a huge interest bill to fund the Carlton and United take-over.