KEY POINTS:
The sharemarket's rally got fresh legs this morning on news Sky City has received a takeover offer at a substantial premium to the current share price.
Sky's shares zoomed ahead 13 per cent, or 56 cents, to $4.89.
The NZSX-50 index, which has rallied over 2 per cent in the last two days, was up 25.84 points to 4232.72 at 10.20am.
Sky City said it had received an indicative and confidential approach from a party expressing an interest in acquiring 100 per cent of the company's shares.
In its approach, the party indicated a potential cash offer price range, subject to conditions, which would represent a significant premium to Sky City's current share price, if a transaction were to eventuate, the company said today.
Sky said there was no guarantee the bid would proceed.
Market leader Telecom was unchanged on 442, No 2 stock Fletcher Building, was down 2c to 1238 following a 29c gain yesterday, and No 3 Contact Energy, was down 1c to 933 after yesterday's 22c gain.
GPG shares fell 1c to 192 on the lifting of its trading suspension.
It had been suspended by NZX after it was revealed its unit, British threadmaker Coats Group, was one of seven companies slapped with a 328.6 million euro ($647 million) fine by European regulators for market collusion. Coats was fined 122 million euros ($235m) - equivalent to 18c a share for GPG. GPG said the fine was "outrageous" and it would appeal with alacrity.
Infratil was up 5c to add to yesterday's 10c gain, to be on 305.
Fisher & Paykel Appliances was down 5c to 353.
On Wall Street, stocks fell as a weakened dollar and a surge in oil prices kindled fresh concerns about inflation, snuffing out a two-day rally that followed the Federal Reserve's deep interest-rate cut.
Initial optimism that the Fed's aggressive move would keep the economy out of recession gave way to concerns about the inflationary impact of a flagging dollar, which raises the cost of imported goods.
The Dow Jones industrial average fell 48.86 points, or 0.35 per cent, to end at 13,766.70. The Standard & Poor's 500 Index was down 10.28 points, or 0.67 per cent, to finish at 1518.75 and the Nasdaq Composite Index fell 12.19 points, or 0.46 per cent, to close at 2654.29.
- NZPA