NZ stocks: INL takeover bid for Sky TV standout

INL's floundering takeover bid for pay television operator Sky Network TV was today the standout news in what was otherwise a lacklustre sharemarket.

INL has said it won't extend its offer, which expires today and comprises $3.35 cash a share plus a swap of three INL shares for every 10 Sky shares held.

By market's close at 5pm, INL shares were down 10c at 490, while Sky TV shares were down 11c at 510, having traded 8598 of the 97.4 million shares INL does not own.

An analyst, who did not want to be named, said INL would be lucky at present to accrue a shareholding in Sky TV above its current 78 percent with its present offer.

"Clearly the remaining Sky TV shareholders are going to hold out until they get a better offer from INL," the broker said, adding Sky TV's improving profitability was a factor.

It remained to be seen whether INL would extend its offer or make it more attractive.

However, INL would have to wait for a year under the terms of its deal with Telecom, which sold its 12 percent stake to INL, before upping its offer.

Meanwhile, market heavyweight Telecom again dominated trading on the New Zealand Exchange and put a negative bent on the two major indices.

It finished the day down 2c at 511, having traded 4.9 million worth on volume of $25.1 million.

The benchmark NZSX-50 index was down 4.98 points at 2361.59, while the NZSX-40 capital index was down 5.69 points at 2203.02. Among the 145 stocks traded were 50 rises and 49 falls.

There was 23.4 million worth of shares traded on volume of $72.5 million on NZX today.

ABN Amro Craigs broker Matt Willis said there was not a "great deal" of corporate news to drive trading along today.

"It (yesterday's monetary policy statement) hasn't done much for the direction of the market (either)," he told NZPA earlier today.

Reserve Bank governor Alan Bollard yesterday left the official cash rate at 5.0 percent, but clearly signalled a rate rise was on the horizon.

In other market news, Fletcher Challenge Forests (FCF) today confirmed it would spend $15.6 million to take a majority stake in United States wood mouldings distributor The Empire Company.

The move would see FCF take its current one-third stake to two-thirds, with an agreement to buy the remaining shares after November 2004.

FCF shares closed the day unchanged at 133.

Fisher & Paykel Healthcare moved up 2c to 1194 on a strong $9.2 million turnover as a US competitor issued a recall on some of its respiratory products.

Shares on the rise today included: Auckland International Airport up 1c at 674, Ports of Auckland up 9c at 810, Steel & Tube up 8c at 378, F&P Appliances up 1c at 386, and The Warehouse up 1c at 508.

Among those on the slide were: Cavalier down 4c at 556, Fletcher Building down 3c at 396, Guinness Peat Group down 1c at 184, Lion Nathan down 6c at 664, Carter Holt Harvey down 1c at 183, and Wrightson down 1c at 131.

There was $40,936 worth of shares traded on the New Zealand Alternative Exchange today.

Overseas, the Dow Jones was up 30.3 points at 9903.72, the Standard & Poor's 500 Index rose 1.34 points to 1066.07, and the Nasdaq Composite Index fell 8.13 points to 1952.12.

- NZPA