KEY POINTS:
Research analysts say talk about a possible takeover for Pumpkin Patch appears to be just speculation at this stage.
The talk heated up on Friday when Kathmandu founder Jan Cameron disclosed a 6.3 per cent interested in the children's clothing company.
Cameron is one of New Zealand's wealthiest women since she sold her outdoor clothing company in two tranches in 2006 . One 51 per cent stake reportedly sold for $276 million.
The publicity-shy Cameron has since started a homewares company, Nood, and recently bought homewares and manchester company Arbuckles from Postie Plus Group.
She has also taken a 14 per cent stake in Postie Plus itself.
Another big investor to take an interest in Pumpkin Patch while the share price is low is Briscoe Group majority shareholder Rod Duke, who has increased his stake to nearly 10 per cent.
The shares touched a four-year low of $1.40 on Friday, far from its peak of $4.95 last January.
Research analysts today said the move was probably two astute investors taking a slice when the price was cheap.
"I don't know what you can read into Jan Cameron," Rickey Ward of Tyndall Investment Management said.
"She doesn't strike me as a person who's aggressive."
However, he said, Pumpkin Patch's share register now had a number of big stakeholders and any takeover bid would probably have to be friendly.
Mark Lister, head of research at ABN Amro Craigs, said the attraction of two big investors generally made the investment community sit up and take notice.
But as far as he knew, there was no takeover talk in the wind.
"Rod Duke has said he simply likes the business, likes the brand, and thinks it's a bargain."
Cameron 's plans were unknown, but it was no surprise she was investing in an sector she knew well and because Pumpkin Patch was "reasonably out of favour, as some of these stocks are".
Lister said some people believed Pumpkin Patch was undervalued and the two investors were probably just "exploiting the negative sentiment".
"They certainly know the sector better than most of the rest of us do."
Individuals and management still hold 43 per cent of Pumpkin Patch, including the biggest shareholder, Setar Montani (11.95 per cent), Rod Duke, the family of chief executive Maurice Prendergast (6.27 per cent), and Mark Synnott, the husband of company founder Sally Synnott (5.6 per cent).
Institutions hold just over 20 per cent, including Fisher Funds (6 per cent), ING (5.7 per cent), NZ Super Fund (4.2 per cent) and Barclays (4.2 per cent).
Pumpkin Patch has been pounded on the sharemarket as investors worry about the company's expansion plans in the US and Britain.
Its shares were up 5c to $1.53 in mid-afternoon trading, not far from its listing price of $1.25 a share in 2004.
- NZPA
