Monday 19th July 2010 |
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AMP's rival for acquiring AXA Asia Pacific, NAB, has revived its bidding prospects, Cavalier is expecting full-year profit to be higher than forecast, while Fisher & Paykel Healthcare is facing pricing competition in the US from an alternative bidding system.
AMP (AMP): National Australia Bank, the insurer’s rival bidder for Axa Asia Pacific, managed to revive the prospects of its bid by agreeing to an extension of time for talks with Axa. AMP already has Australian and New Zealand regulator approval to acquire Axa, while NAB’s superior offer didn’t get approval, meaning the lender may have to sell assets to win over regulators. AMP fell 2.4% to $6.46 on Friday.
Cavalier (CAV): The listed carpet-maker said on Friday that full-year profit would come in higher than forecast. Profit is expected to be $16.3 million to $16.7 million in the year ended June 30, up from its previous guidance for tax-paid earnings of between $14.5 million and $15.5 million and is as much as 22% up on the previous year’s $13.7 million. The stock rose 1.6% on Friday to $2.50.
Fisher & Paykel Healthcare (FPH): The manufacturer of health-care products will face some pricing pressure in the US market this month when the Centers for Medicare and Medicade Services introduces a new competitive bidding system. Chief financial officer Tony Barclay said the company would face some pricing pressure but didn’t expect a "direct, large impact", the NZ Herald reported. The stock dropped 1.3% to $3.02 on Friday.
NZ Farming Systems Uruguay (NZS): Olam International is making a full takeover offer for the company, offering 55 cents a share in cash, a 34% premium to its last trading price. As part of the transaction, PGG Wrightson has agreed to sell its 12% holding in Farming Systems to Olam. Shares of Farming Systems traded on Friday at 41 cents and have sunk about 70% since beginning trading in December 2007. Wrightson stock traded on Friday at 47 cents.
New Zealand Oil & Gas (NZO): Shares of the oil company fell 3.9% to $1.25 on Friday amid disappointment that its latest drilling venture on the Tui oilfield is approaching target depth with no signs yet of commercial quantities of hydrocarbons.
Telecom (TEL): The phone company faces another rival in the mobile market with news that state-owned Orcon is entering the market, using Vodafone's network. The shares fell 0.5% to $1.89 on Friday.
Westpac (WBC): The lender may face multi-million dollar losses from the collapse of the leasehold development of the huge Albany City project on Auckland's North Shore, the Sunday Star Times reported. The stock fell 1.4% to $27.45 on Friday.
Themes of the day: Singapore's Olam International expanded its holdings of New Zealand primary food production assets by agreeing to buy PGG Wrightson's stake in NZ Farming Systems Uruguay and making a full takeover offer for the dairy farm developer. US stocks dropped on Friday, driving the Dow Jones Industrial Average down 2.5%, amid concern that recovery in the world's biggest economy is faltering. Wall Street dipped as General Electric, Bank of America and Citigroup posted earnings that beat estimates, while reporting weaker revenue. Meantime consumer confidence declined. Prime Minister John Key has announced plans to give companies more flexibility in sacking workers and tightening rules around sick days, while restricting union access to workplaces.
Businesswire.co.nz
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