The Week in Review

Friday 15th December 2000

Casino operator Sky City said it would take up its option to buy up to 33% of Australian online betting company Canbet at a cost of $A14.4 million ($18.5 million). It already has 6.8%.

The government is investigating a claim by Fisher & Paykel that Korean refrigerators and washing machines are being dumped in the New Zealand market. F&P says the machines are being sold at prices lower than on the Korean market.

Fisher & Paykel signed a deal to market its refrigerators in Japan under the brand of "a leading US appliance manufacturer."

A PricewaterhouseCoopers appraisal report on Lion Nathan's offer for up to 51% of winemaker Montana valued the shares at $4.16 to $4.64, higher than the $3.20 to $3.80 at which Lion and Montana chairman Peter Masfen had said they may bid. Montana's directors advised shareholders not to sell. Lion dismissed the valuation as "over-ambitious." The Commerce Commission has cleared Lion to buy 100%.

Restaurant Brands reported an eighth consecutive quarter of sales growth with overall sales up 13.1% on the December 1999 quarter, to $60.7 million. Year-to-date sales were $234.1 million, up 6.7%.

AMP's September third-quarter cashflows were up 282% to $A6.2 billion ($7.9 billion). New Zealand contributed $A175 million ($224 million), up 6.7%.

Air New Zealand unit Ansett Australia reduced the minimum acceptance condition in its bid for Hazelton Airlines from 90% to 50.1%. Ansett's $A1.35 bid tops a $A1.20 bid from Qantas.

The New Zealand Dairy Board will pay $A80 million ($103 million) in cash to debt-burdened Bonlac Foods as part of a plan to merge the two companies' consumer foods divisions.

State-owned national transmission grid operator Transpower cut its transmission prices 14%, the third annual cut in a row.

Insurer HIH New Zealand posted a $22.1 million June-year profit, up from $5.3 million a year ago.

Family-owned Pyne Gould Corporation paid $20 million for Frontline Finance and an undisclosed sum for Marac Finance. Including its Allied Finance arm its finance assets now total $660 million. Frontline and Allied will be merged but Marac will operate separately.

Pyne Gould lifted its $1.07 a share offer for listed cashbox South Eastern Utilities by 1c to $1.08 and undertook to pay out to minority shareholders "a proportion" of the proceeds of any sale of SEU's Genztech subsidiary. SEU directors recommended the offer.

Telecom announced Ericsson will operate its mobile network - shortly before the network broke down leaving cellphones useless.

Pharmaceutical wholesaler Sigma said it hoped to sell its New Zealand operation to its main rival, Zuellig Pharma, in a move that would give Zuellig more than half the wholesale drugs market.

An Australian analyst's report said Optus had confirmed Telecom, along with Vodafone and Singapore Telecom, was interested in buying its mobile division. Telecom however maintained its silence.

Macquarie Bank launched its corporate and institutional New Zealand sharebroking operation yesterday.

Natural Gas Corporation will replace Tower Ltd in the Stock Exchange's Top Ten index from January 3.

Independent Newspapers Ltd appointed chief operating officer Rick Neville as acting managing director following the death on Wednesday of Mike Robson.

CanWest is offering to buy the 28% of Radioworks it does not already own.

Pacific Retail Group lifted September half-year profit 19%, to $6.1 million.

Cosmetics etailer BeautyDirect Online canned a deal to merge with distributor CS Company, saying it could not fulfill conditions in the agreement.

Vodafone launched its Vizzavi internet portal. The service, which will be available worldwide, allows users of Vodafone's WAP-enabled phones to receive an array of data.

Apple exporter Enza posted a $38 million September-year loss. An $11 million operating surplus was outweighed by one-off losses including a $17 million foreign exchange loss.

The government and TVNZ will appoint independent advisers to investigate splitting off network operator Broadcast Communications Ltd from TVNZ.

E-Force is closing its internet portal, citing unacceptable losses. The company had hoped to aggregate online buyers but revenues were insufficient to cover costs.

Online education company E-cademy lost $1.39 million in the September first half.

Natural Gas Corporation took the 700,000 gigajoule gas supply contract for Auckland's Chelsea sugar refinery from Contact Energy.

Telecommunications operator Newcall warned it wouldn't reach its forecast of breaking even at the operating earnings level by the end of the year, blaming margin erosion and pricing pressure.

Carter Holt Harvey mothballed a small sawmill at Mt Burr in South Australia amid a slump in the Australian housing construction market.

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