Super millions add to flood

By PAUL PANCKHURST

The New Zealand Superannuation Fund is turning on its sharemarket investment tap just when corporate plays and share buybacks are freeing hundreds of millions of dollars for reinvestment.

One view is that the extra money may prop up share prices in coming months in a market one broker report last week called already "fully valued".

The super fund, sometimes called "the Cullen Fund", is due to start investing in the sharemarket by the end of this month - which is next Tuesday. It could be investing already, since it is keeping the timing of its entry to itself.

It has about $300 million to put into the market in its first year.

Elsewhere, a back-of-an-envelope calculation shows nearly $1.8 billion ending up in shareholders' pockets from existing market plays and share buybacks.

NGC Holdings hopes to return $525 million to shareholders in late November or early December through a three-in-seven share cancellation. However, most of the money will go to 66 per cent owner AGL and is not expected back on the market.

Fletcher Challenge Forests is planning to return $558 million to shareholders from the pending sale of its forestry estate and the previous sale of cutting rights. The deadline for a sale and purchase agreement with the Campbell Group, of the United States, is December 31.

INL's yet to be launched shares-and-cash takeover offer for Sky Network Television would include cash of $440 million.

Australia's Toll Holdings is paying $185 million for 80 per cent of Tranz Rail in a takeover offer closing on October 10.

Also in the mix: Mainfreight's offer for Owens and the latest share buyback programme where Sky City will spend up to $31.4 million by the end of November.

* The super fund yesterday named Barclays Global Investors to manage about a quarter of its overseas shares.