THE MARKET Corporate activity sets new peak

Press, 7 August 1985, Page 37

THE MARKET Corporate activity sets new peak

The New Zealand sharemarket reached a new peak yesterday on active turnover as a mystery bid for 20 per cent of Crown Corporation, hard on the heels of Friday’s equally mysterious bid for 15 per cent of Cable Price Downer, added further impetus. Both bids appear to be an attempt to make the two companies extend their cross-shareholding and to jack up the price to leave a profit for the raiders. CPD and Crown are linked by a 20 per cent cross-sharehold-ing, which either may extend to 50 per cent. The corporate activity helped buoy the sharemarket yesterday, sending the Barclays industrial index up 9.37 points to a new high of 1755.27. About 1.4 million Crown shares sold yesterday, with the share price closing 23c ahead at 201. The Auckland broker, Morrow and Benjamin, announced in the morning that they were in the market for a client seeking 20 per cent of Crown at 200 c, and later added an escalation clause to the bid. Trading was less active in CPD shares, with 19,700 selling at the 425 c price offered by a client of Buttle Wilson and Company, and another 98,600 selling for 428 c. “There is speculation that someone is bidding in to stir up action between the two companies and get out at a good price,” said one broker. So far CPD and Crown had stepped back from the

market to see how the bids develop, brokers said. “The market was reasonably active, with turnover aided by the bid for Crown Corporation,” said Mr Humphrey Sherratt, of Anderson Reid and Co., Christchurch sharebroker. A recent pattern seems to have developed where the market is firm in the morning and then levels off in the afternoon on mild profit-taking, he said. Brierley Investments continues to firm, many second-line stocks rose a few cents, and on the mining and oil board Kupe continues to be actively traded, Mr Sherratt said. Mr Hamish McKay, market operator for the Auckland sharebroking firm Payne Belcher and Partners, said that the market was pretty active and reasonably firm. Some stocks weakened, but corporate activity kept the market humming along, he said. Leaders among the rises yesterday were Dominion Breweries which gained 10c to 275, and up 7c each were Brierley Investment to 565 on solid volume and Goodman to 365. Waitaki put on 5c to 235; Lion at 360, and Progressive Enterprises at 368 each rose 2c. UEB lost 3c to 165, while down lc each were Fisher and Paykel at 312 and NZI at 175. NZ Forest Products at 260 and Fletcher Challenge at 350 closed unchanged. Elsewhere, the rarely-

traded Fund of NZ gained 30c to 300, Smith City Market firmed 15c to 625, and 10c rises were recorded by NZIG to 360, PDL to 540 and Wilson and Horton to 700. Easing 10c were Apex at 310 and Carbonic Ice at 190. A special sale of 200,000 Chase shares went through at 325, 4c lower than its closing price. The Barclays mining index firmed 2.37 points to 103.34, with keen interest shown by one firm of brokers in NZ Goldfields which firmed 15c to 135 yesterday.