Forum Archive Index - October 2000

["G.P.Thompson" <gp.thompson@bitworks.co.nz>]

Good comments Derek.
The whole FCL divestment saga has been rife with unsubstantiated rumours.
However the small investor will only get hurt if they follow the herd in
this case. The volumes traded yesterday were not huge  for this stock
suggesting small SH exits. The facts have only changed a little. FCL are
still dedicated to restoring shareholder value if not by sale then by
alternative means. There's no need to bail out at these prices if you don't
have to IMO. You are right about being kept in the dark and  a statement to
the market by FCL today would be timely.
GPT
----- Original Message -----
From: "Derek" <dkw@paradise.net.nz>
To: <sharechat@sharechat.co.nz>
Sent: Friday, October 06, 2000 10:17 AM
Subject: Re: [sharechat] FFS


> 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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