Forum Archive Index - May 2000

["Geoff Ewert" <gewert@wai.quik.co.nz>]

Morally bankrupt
----- Original Message -----
From: "Chris" <cd@ak.planet.gen.nz>
To: "sharechat" <sharechat@sharechat.co.nz>
Sent: Thursday, May 25, 2000 11:31 AM
Subject: [sharechat] Contact activity


> 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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