Forum Archive Index - May 2000

[Chris <cd@ak.planet.gen.nz>]

Interesting to see ABN-AMRO advice to clients in light of lift in CEN 
price to 285c and Edison activity rumours.

'best course of action (on current evidence) may be to sell half your 
holding.  In this way you will retain an interest if there is a takeover, 
but cap in the current price if there is not.'

I find this interesting because;

1)  The house broker for CEN is none other than ABN-AMRO.  They promoted 
the listing.  They have the inside knowledge.
2)  ABN issued a BUY on CEN in Dec '99 when it was at 340c and updated to 
ABSOLUTE BUY as it slid past 290c early in the year.
3)  Current valuation for CEN by ABN is 366c.

My thoughts are;

1)  Why do ABN advise to sell at a level, 80-90c under their own 
valuation?
2)  Are ABN accumulating on behalf of Edison or possibly on spec of 
action they are already alerted to?
3)  If Edisson intention is for majority control (another 60m shares) 
they may be happy for ABN to accumulate and place these holdings with 
friendly parties guaranteed a small but definite profit for the trouble.

Your thoughts?

Chris.(happily holding CEN)
       


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