Forum Archive Index - August 2000

["Richard Hooper" <hoop@ihug.co.nz>]

Hi   Chris , Brian
check out company announcement for STU on 29 Feb 2000. and everything should
become clearer . Bacsically BHP is transferring its non-core assets to an
employees  company which is supposed to be set up at some stage towards the
end of the year , Its assumed that 50% holding of STU by BHP will be one
non-core asset to be transferred over to this new company.
Thats of course , BHP hasn't changed it's mind since then :))))
cheers Hoop
PS  BHP tried to sell it's share of STU to Fletcher Steel but the commerce
commission  stopped it.
----- Original Message -----
From: "Chris" <cd@ak.planet.gen.nz>
To: "sharechat" <sharechat@sharechat.co.nz>
Sent: Thursday, August 17, 2000 9:59 AM
Subject: [sharechat] STU-in play


>
> Steel & Tube has risen 25% in the last month.  BHP's controlling interest
> has long been watched for outright sale or total control.  Check this
> from today's SMH.
>
> *The company later said it would spin off its $1.9 billion long products
> business and close or sell other non-core assets*
>
> Full read at:
> http://www.smh.com.au/news/0008/17/business/business11.html
>
> Earlier in the year BHP earmarked STU for consolidation or sale.  They
> backed off and did nothing.  It is most unlikely that they will err this
> time.  Keep in mind the impending sale or shakeout of FLB.  It would not
> surprise me to see a bit of jockeying and a single player controlling the
> FLB steel div and STU, despite earlier Commerce Commission findings.
>
> I mention this stock because I believe there is more upside to be had.  I
> have received a personal account from the Christchurch branch, 'sales are
> booming, we're run off our feet'.  The big recovery in Canterbury is
> feeding through quickly to STU.  Rural and commercial rather then
> residential at this stage but it makes sense to be in that order.
>
> Come Monday 21st they go ex a 7c div(full imp), a total of 13c for the
> year so watch for opportunities today and Fri.  Current broker valuations
> for STU are over $2 with ABN AMRO at $2.48.
>
> You be the judge.
>
> Ragards
> Chris
>
>
>
>
>
>
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