Fisher & Paykel Turning Chinese: Not at the Current Offer

The bid from 20% holder of Fisher & Paykel Appliances, Haier, [FPA.NZ] looks to be just the start to me.

It is a low-ball bid from an opportunistic bidder in my view and even after all it has been through over the last couple of years still values the company at around $850 million.

The company is Haier and it is large Chinese white ware manufacturer worth around 20 times more than this so the buyout for the company must be put into scale - they can afford more.

Shareholders need to beware that the purchase price is well below the companies intrinsic value and does not place any value on the future prospects of this company and even though I have slagged it in the past, it is worth more. FPA is now running at surplus again and looks set to pay divided once more.

If shareholders recently come to registry want to sell it the fair enough, but if just 10% of sharehoders say no the Haier will have to go spin.

Too many companies have been sold too cheap to overseas buyers and im afraid pakels is another one of those.

Lets not make this another one.


Fisher & Paykel Appliances @ Share Investor

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Restaurant Brand's New Zealand Takeover

The ongoing saga of the Restaurant Brands Takeover , the company that owns and operates KFC, Starbucks and Pizza Hut in New Zealand, looks set to continue. As I indicated months ago on my Sharemarket Forum www.shareinvestor.biz it looks like the private equity company that bought Tegal Chicken and Griffins last year is on the prowl for RBD.

RBD is in a mess at the moment so the buy price isn't going to be large but it will clearly top the current SP of $1.17.

Keep a close eye on the SP at www.nzx.com or at my Forum www.shareinvestor.biz

Happy Investing,

Share Investor



Tower ups stake in Restaurant Brands amid takeover talk NZPA Thursday, 22 February 2007

Tower Asset Management has increased its stake in Restaurant Brands ahead of a potential takeover of the fast-food company, The New Zealand Herald reported today.

Tower's latest buy was small – thought to be about 65,500 shares – but took its total holding to 5.04 per cent.

The Herald said it understood Restaurant Brands has engaged an investment bank – believed to be Macquarie Bank – to advise it about a potential sale.

Shares in Restaurant Brands, which owns the Pizza Hut, Starbucks and KFC franchises in New Zealand, closed unchanged at $1.14 yesterday.

In December, Restaurant Brands chief executive Vicki Salmon sent the share price up over 10 per cent when she noted people had been exploring the prospect of a takeover.

The Herald said at least two private equity companies are being mentioned in connection with Restaurant Brands – CVC Asia Pacific and Pacific Equity Partners.

CVC, a joint venture between CVC Capital Partners in London and New York's Citigroup, aborted a $1.65 a share bid in June last year.


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