KEY POINTS:
A single investor spent $111 million on Telecom New Zealand shares yesterday but the off-market transaction had a limited effect on the company's wallowing price.
The shares changed hands between two parties - possibly with one broker acting for both - in a transaction known as a "crossing" or "marriage".
They were sold for $3.68 at 1.15pm yesterday while shares were trading on the open market for $3.70- $3.72.
Shares in New Zealand's largest publicly listed company closed at $3.77, up 7c for the day but still close to a 14-year low.
The single off-market transaction represented about 1.7 per cent of the company's market capitalisation.
It represented 90 per cent of trading in the firm yesterday.
James Smalley of sharebrokers Hamilton Hinden Green said details of the transaction were unclear. "It could be case of overseas investors taking advantage, cashing in on the high value of the kiwi dollar."
Telecom shares have been knocked around as it faces new challenges from regulation including local line unbundling and its long delayed capital expansion.
Telecom's biggest weakness is its biggest strength, Smalley said.
"The company's recent update - held on April 10 - basically said that ebitda will fall for the next two years until they can turn the ship around."
On the other hand, he said, there was still very little likelihood that profits for the company would fall significantly.
There also were significant trades yesterday for big stocks like Fletcher Building and SkyCity and Smalley said it was plausible the same investors were involved in these. They include a one-off transaction with 11 million shares changing hands in Fletcher Building.
