Forum Archive Index - October 2000

[Derek <dkw@paradise.net.nz>]

Thanks for the post GPT, 

The last 2 days with FFS give yet another example of how small shareholders
can get hit by not having the inside knowledge of others  - a good argument
for for small shareholders sticking to non-speculative investing I guess &
maybe moving offshore (Does anyone know if overseas sharemarkets any better
in this regard?).

Also a brick-bat to Fletchers for keeping everyone in the dark.

Cheers,
Derek





At 10:02 AM 06/10/00 +1300, you wrote:
>    my question posed yesterday is now apparent  from the following article
>in the Herald.  A placement would be the easier to arrange  and must be
>attractive to a US operator given the exchange rate. This would of  course
>dilute the shareholding with NTA reducing from its current $1.69 to say 
>$1.25 or thereabouts. Still makes FFS an attractive proposition at today's 
>prices. Look out for a rocky ride for a few days as the traders get out at
>any  cost. GPT   Fletcher Forest price drops as talks fail
>
>06.10.2000 - By GEOFF SENESCALL  Fletcher Forests' share price was felled
>yesterday amid speculation that the  debt-laden company will undergo a
>major recapitalisation after sale talks  foundered.  Fletcher has been in
>negotiations with Citic, its Chinese joint venture  partner in the Central
>North Island Forestry Partnership.  But it is understood that the pair - in
>dispute over the partnership's  management contract with Fletcher Forests -
>have been unable to patch up their  differences.  Fletcher is understood to
>have decided to pull the plug on discussions which  included a sale to
>Citic.  However, Fletcher Challenge spokeswoman Ginny Radford would not
>comment last  night when asked if the deal was dead.  A Citic spokesman
>said earlier that no progress had been made, and it was  moving to a court
>resolution.  Fletcher Forests' share price yesterday tumbled 6c to 72c as
>the market  started talking about a possible rights issue. But an
>alternative is for a  placement of shares to a cornerstone shareholder. 
>Brokers estimated Fletcher Forests would need up to $300 million to shore
>up  its balance sheet.  Resolving issues around Fletcher Forests is the key
>to the restructuring of  the rest of the group, which includes Fletcher
>Energy and Fletcher Building.  Meanwhile, shareholders in Australian oil
>explorer Petroz have rejected a  proposal that would have handed control of
>the company to Fletcher Energy.  A meeting of shareholders held yesterday
>to seek approval for a Fletcher  Energy proposal that would have seen it
>take at least a 33.7 per cent stake in  Petroz, and underwrite a rights
>issue, overwhelmingly voted against it.   




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