The week in review

Friday 25th January 2002

Contact Energy, the subject of a $4.14 a share takeover offer from Edison Mission Energy, said its first quarter financial results were tracking "slightly below" the projection in its November draft business plan. Edison's bid expires on February 3.

French food company Danone declared its offer for beverage maker Frucor unconditional after securing 90% of the shares. The remainder will be acquired compulsorily.

CanWest unit TV3 reported a $1 million November quarter operating profit as broadcasters struggled with low advertising revenues. The More FM and Radioworks units notched up a $6 million gain.

Television New Zealand subsidiary Broadcast Communications Ltd signed a memorandum of understanding with the Far North Development Trust to develop a broadband wireless service to provide high-speed telecommunications and internet access. BCL is upgrading its national transmission network.

Air New Zealand lost its last director with experience in operating an airline, Singapore International Airlines chief executive Dr C K Cheong, following the dilution of SIA's shareholding from 25% to 4.5%. Under a rescue plan the government last year pumped in $880 million and took an 82% holding.

Carter Holt Harvey posted a $25 million December-quarter profit and a $6 million profit for the nine months to December. Chief executive Chris Liddell said markets were not expected to recover until the second half of this year.

State-owned generator and retailer Meridian Energy will issue $50 million of medium-term notes in New Zealand and $A100 million of notes in Australia over the next month.

Pan Pacific Petroleum, an oil and gas explorer with prospects off Western Australia and at the Tui acreage off Taranaki, began trading on the New Zealand Stock Exchange. The company was spun off from New Zealand Oil & Gas.

Pacific Retail Group lifted its stake in takeover target Bendon to 19.05% and launched a full takeover bid at $1.90 a share. Its offer rivals a bid from Bendon management and AMP Henderson worth $1.81 a share. Both parties are bidding for the operating company, with cash to be distributed pro rata to shareholders.

Eldercare New Zealand reported a $842,000 November first-half loss, blaming the costs of last year's restructuring. Earnings from the core operation were down 15%, mainly because of the poor performance of the Ranworth Healthcare rehabilitation business.

Hellaby Holdings will buy back up to 5% of its shares on-market over the coming 12 months. Directors said the company's underlying value was significantly greater than the current market price - $2.34 when the announcement was made.

The Commerce Commission is investigating a complaint a consortium of meat companies, reported to comprise Affco, Richmond, and Wilson Hellaby, conspired to buy and close competitor Coromandel Meats.

The trade surplus for the year to November was $875 million compared with the $2543 million deficit recorded 12 months earlier.

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