NZ stocks: Liquor saga again in the spotlight

By ELLEN READ markets writer

The stockmarket fireworks start early this week fuelled by the on-going Montana/Lion Nathan/Allied Domecq saga.

First up, the takeovers panel meets today to decide whether Lion breached the "intent" of the new takeovers code by its recent split-level offer for Montana.

Also today, the NZSE market surveillance panel standing committee will release a finding on whether there is a "wink wink" relationship implied by Lion selling shares to, and then potentially buying back, from the same parties.

On Thursday the standing committee meets again to consider a complaint from Lion, over Allied's purchase of shares from Montana director Peter Masfen.

Utility investor Infratil holds its annual meeting in Wellington this afternoon, in the midst of its haggle for control of energy retailer TrustPower with Alliant and AGL.

Tomorrow, the market is braced for a poor first-quarter result from timber giant Carter Holt Harvey. Estimates range from a $5 million net loss to a $2 million net profit, down sharply from the $90 million net first-quarter profit posted last year.



Elsewhere the market will be subdued this week as it continues its lead-in to the mid-August start to the reporting season.

Listed property investor Capital Properties, which in May announced a full-year net profit of $13.58 million, up from $13.11 million the previous year, holds its annual meeting on Friday, as does New Plymouth-based electricity network company Powerco.

Air New Zealand's future remains on hold.

The company has presented the Government with a formal proposal seeking approval for Singapore Airlines to increase its stake in the national carrier, but has said it does not expect a decision before the end of the month.

Fisher & Paykel has enjoyed a stellar run recently with interest in the stock likely to remain healthy in the run-up to the healthcare spinoff. Fisher & Paykel plans to complete the separation of its healthcare and appliance divisions, and the subsequent 20 per cent US Healthcare share offer, by year's end.

The NZSE-40 capital index ended last week at 2043.46, little changed from 2047.02 the previous Friday.

The NZSE-40 has been stuck in a range between 2000 and 2100 for the past two months after climbing off a low around 1900 at the start of the year.