Godfrey Hirst unravels Feltex stake

Godfrey Hirst is thought to have exited the last of its stake in troubled carpet-maker Feltex yesterday.

On Monday, the Australian firm said it had almost halved its stake to 4.57 per cent from 8.72 per cent.

Shareholders owning less than 5 per cent of a company are not required to notify the exchange when they sell down their holdings, but a large tranche of Feltex shares were crossed just before the close of trading by Macquarie, the broker who acted for Godfrey Hirst on Monday.

Market commentators said the most likely seller was Godfrey Hirst.

Curiously, shortly after the 4pm sale, Macquarie stepped into the market again - this time buying Feltex, indicating another player saw value in Feltex at these levels.

Feltex, which plunged to a fresh lifetime low of 35c on news of Monday's selldown, recovered 2c yesterday to close at 37c. Brokers said the company, which generates the lion's share of its earnings in Australia, was in a good position to benefit from the recent fall in the dollar.

Last month, it reported a first-half after tax loss of $11.83 million - down almost 200 per cent on the year before.

A foray by Godfrey Hirst seemed doomed when Feltex said the potential deal was not seen as in the "best interests" of shareholders.

- NZPA