Forum Archive Index - April 2000

[Chris Darby <darby@ak.planet.gen.nz>]

True to a point, but consider $2.30 and the buying opportunity it offers 
now.  Come July, if the deal goes through, every man and his dog will be 
scrambling for NZ stock.  I exited @ $2.27 and took advantage of the 
weakness in the techs.  Went for BMC Media and Solution 6 and am way past 
what I would have taken in July from Norske.  Given FLP's last fall over 
with FLC Canada, I wouldn't hang on.  Take $2.30 Monday and get on with 
it.

Chris       

>This is one for Hugh. Norske are buying FLP shares for $2.50, the deal is
>supposed to be settled in July. Assuming that payment is made on 31st July
>and brokerage is payable at 1.5% the gain will be 7.1% based on a current
>share price of $2.30. This is an annualised return of 24% tax free - not
>bad.
>
>The only risk is that the deal will not go through and as the guilty party
>has to pay the other $200m in compensation in this eventuality it is a small
>one. Even if the deal is delayed a month the return is still 18%
>
>Cheers
>Mike H

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