NZ stocks: Industrial, global issues at top of Ports agenda

By ELLEN READ markets writer

Shareholders at Ports of Auckland's annual meeting today will have two things on their minds - the impact of continuing industrial problems and the effect the unstable international political situation will have on the company's business.

Tomorrow, NZ Experience, owner of the Rainbow's End amusement park, holds its annual meeting. The company booked earnings of $184,000 for the year to June 30.

At the meeting, chairman Geoffrey Cumming will resign and shareholders will be asked to appoint Anthony Frankham to replace him.

On Wednesday, forestry giant Carter Holt Harvey reports its first half result for the six months to the end of September.

Carter Holt - with Fletcher Challenge Forests, Citic and United States forestry investor Hancock - has won through to the second round of bidding for the assets of the Central North Island Forestry Partnership.

The partnership went into receivership early this year after the relationship between the partners - Fletcher Challenge Forests and Citic of China - became increasingly acrimonious.

Industry sources say the Carter Holt bid involves paying no cash but the offer of its own forests as equity in a new partnership. Although Carter Holt and Fletcher are said to be making separate offers, there is speculation they may try to form a joint partnership once due diligence is complete.

No company news is scheduled for Thursday.

On Friday, Port of Tauranga and Southern Capital hold their annual meetings.

On the Air New Zealand front, the Government is due to make its first cash payment of $300 million to the company this week.

The Government agreed this month to a $885 million recapitalisation of the airline, conditional on checking its books and ensuring its exposure to the failure of Ansett was limited.

In other news, Contact Energy looks set to disappear from the local Stock Exchange following Friday's takeover offer from California-based Edison Mission, which is offering to buy the 49 per cent of Contact it does not already own at $3.85 a share.

The $1.09 billion bid values Contact at $2.2 billion. The company is one of the most widely held stocks on the market, with around 145,000 shareholders. The offer will be dated October 31 and remain open until November 30.

On the global front, while overseas moves will continue to largely dictate local sentiment, some reprieve may be in sight from recent woes. US stocks rallied late last week, rebounding to levels before the September 11 attacks sent the market reeling.