Report on bidder interest causes stock exchange flurry

Revelations of bidder interest in listed property investor CDL Investments by the Business Herald yesterday created a flurry of stock exchange activity and an attempt at a denial.

The report, which quoted CDL director John Lindsay disclosing that two rivals had investigated a takeover of CDL last year, was met with a quick response from the NZX.

It saw a large number of shares changing hands, put a trading halt on the stock and queried the company, which subsequently put out the following notice.

"Executive director John Lindsay has been quoted out of context in relation to a possible takeover offer for the company. The company is not aware of any offers ... from any party at this time. The articles contain factual inaccuracies and are, therefore, purely speculative."

After the trading halt was removed, the shares moved up 2c to trade up to 39c. Just over 1,155,000 CDL shares were traded yesterday.

Later Lindsay curiously confirmed the information contained in the article, that investigations had indeed been made by two parties last year. "Two parties took a cursory look at us, said it was too hard and away they went," Lindsay said.

Lindsay said there was no option but to issue the statement which clarified the company's position.

On Thursday, he said CDL was an attractive takeover target due to its large land bank and lack of debt.

NZX corporate affairs manager Rowan Macrae said the trading halt was not announced to the markets due to its brevity.

"The halt went on at 10.30am because we noticed a very, very large spike in their trading volumes and we wanted to know why. So we contacted CDL and asked. [Lindsay] said it was on the basis of the article and we said he needed to correct it."

For the record - the Business Herald stands by its story.