Fletcher keeps eye on Steel and Tube

By ELLEN READ

Fletcher Challenge Building has applied for clearance to buy 100 per cent of Steel and Tube Holdings - but has no plans to do so.

The company said the application was just to keep its options open.

The application, under the name of Fletcher Building's steel division, Fletcher Steel, seeks to restore previous approval given by the Commerce Commission which expired in December.

Fletcher Building said it did not buy Steel and Tube shares under that approval, partly because of BHP's decision to withdraw from the sale of its 50.01 per cent stake in Steel and Tube and partly because of volatility in the Australasian steel industry.

"We basically just want to have the clearance in place," said Fletcher Steel communications manager Daryll Hutchison.

He said there had been significant change in the Australian and New Zealand steel industry in the past 12 months and uncertainty about the future made it sensible to retain the option.

He is confident that the new application will be approved because no significant changes have occurred in New Zealand market shares since the previous application was approved.

On Thursday, Steel and Tube Holdings reported a $6.7 million after-tax profit for the six months to December, up from $6.4 million in the same period last year.