Fletcher bid on target, says analyst

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Fletcher Building should not raise its bid for Australian building supplies company Crane Group, according to an analyst.

Crane Group has rejected Fletcher Building's cash and scrip offer, which is worth A$9.35 ($12.17) a share. Credit Suisse believes that the bid "might just fly" and Fletcher Building does not need to raise the price. Crane had limited alternatives to crystallise more value for its shareholders in the next 12 months, Credit Suisse said.

Fletcher Building shares closed up 4c at $7.81 yesterday.