New Zealand shares rose, led by Z Energy and Spark New Zealand in relatively light trading, while Sky Network Television fell after the pay-TV operator and Vodafone New Zealand terminated their merger agreement, although it did pare some of its losses over the session as more detail came to light.
The S&P/NZX 50 Index rose 42 points or 0.6 per cent to 7,595.50. Within the index, 30 stocks rose, 12 fell and eight were unchanged. Turnover was $110 million.
"It's firm, but on very light volume. The start of the week looked like it was going to be relatively quiet, but there has been a little bit of interest" with some corporate activity, said David Price, director of institutional equities at Forsyth Barr.
Sky and Vodafone New Zealand withdrew their appeal against the Commerce Commission's rejection of their $3.44 billion media merger, which Price said sparked some activity on the market. Sky initially fell 5 per cent but after chief executive John Fellet came out and said the decision to drop the appeal was a mutual one with the costs likely to outweigh the benefits, it pared some of its losses and ended down 2.1 per cent at $3.32, the biggest drag on the index.
Similarly, news that Suncorp Group's Vero Insurance New Zealand unit had sweetened a takeover offer for Tower also garnered interest, Price said. Vero is offering $1.40 a share to take over Tower, valuing it at $236.1m, up from an earlier price of $1.30 a share, or $219.3m. Tower shares are in a trading halt as the general insurer's board goes through the detail of the increased bid. Tower last traded at $1.155.
