Masthead's Abano raid

Masthead, the investment firm of Christchurch's Stewart family, has launched a lightning raid on the health services investor Abano.

The move was prompted by the opportunity to buy shares in Abano being offloaded by Eric Watson's Cullen Investments.

Masthead has paid $7 million for a 19.9 per cent stake in Abano, which puts it in a strong position to launch a takeover bid. A 20 per cent stake is the trigger point at which a shareholder must make a formal takeover.

Shareholder notices to the NZX indicate that Watson has sold a stake of just over 10 per cent.

The rest of Masthead's Abano shares have been bought off-market from other substantial shareholders, the notices indicate.

Family spokesman Mark Stewart was unavailable for comment yesterday but, in a statement, said that Masthead was taking a long-term position following its divestment out of the plastics industry.

The Stewart family has been cashed up to the tune of nearly $200 million after selling its plastics company Alto to Australian rivals Visy this year.

The Alto sale followed a long takeover battle for control for the listed plastics company Vertex. Masthead eventually paid $66 million for Vertex, which was then delisted and merged with Alto.

Abano shares rose 23c yesterday to close at $1.50.