BlackRock takes 5pc slice of Fletcher Building

A five per cent stake Fletcher Building has just been bought by global investment giant BlackRock.

BlackRock, the world's biggest investment manager, has snapped up a 5 per cent stake in Fletcher Building.

The New York-based firm, which has about US$4.5 trillion in assets under management, began building its holding in New Zealand's largest listed company in November, purchasing the shares mostly on market at between $7.94 and $8.97 a piece, according to a substantial security holder notice released today.

Fletcher shares, which have shed 7.9 per cent over the past year, opened at $8.85 this morning.

New York-listed BlackRock's other New Zealand investments include telco Spark, mining firm OceanaGold and casino and hotel operator SkyCity Entertainment.

Fletcher reported a 26 per cent drop in half-year profit to $114 million last month.
The fall in the construction and building products firm's bottom-line was blamed on an impairment of goodwill and site closure costs.

BlackRock was established in 1988 by a group of Wall Street bankers including Larry Fink, its current chairman and chief executive.

In addition to its more than US$4 trillion in directly controlled assets, the company also oversees US$11 trillion through its Aladdin trading platform, according to the Economist.