Paykel scoffs at rumours

By Yoke Har Lee

The healthcare division of Fisher & Paykel is not for sale, says chief executive Gary Paykel.

He dismissed reports that offers had been made for it as complete fiction.

"The story I have been hearing is that a healthcare company came to visit us and wanted to buy us, that we said no, if you want to, you have to buy the whole lot [of the company].

"Then there was a European healthcare, then a US healthcare company ... Nothing is further from the truth."

The division was in no way up for sale.

The only reason to consider any proposition would be if someone placed an outrageously high price on the division.

"At the end of the day if there is an offer that is priced through the roof, we have to consider it, if only in the interest of shareholders," said Mr Paykel.

F&P shares have risen to 630c from 570c on Friday. Over the last two trading days the shares have risen 40c, or 6.7 per cent, on takeover rumours.

Richard Blundell, the company's corporate affairs manager, is on an annual overseas meeting with F&P's institutional investors in Britain and the US.

While in New York, he will see some potential institutional investors, Mr Paykel said.

Before Mr Blundell's departure, the company sent out a strategic update to analysts to keep the sharemarket informed.

Mr Paykel said the update did not contain anything materially different from what was said at the company's annual general meeting.

Brokers said F&P's price ran ahead of itself, to 750c in January, and then fell back.

Dave Roberton, a director at Warburg Dillon Read, said: "When the price fell to 545c, it started to look cheap, so it's really a rally back to their fair value."