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  1. #871
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    Good for those who got in sub $5 mark.

  2. #872
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    FWIW, today's AFR has a headline to the effect that "the future of Origin's majority stake in Contact Energy may become clearer this week".

    Article behind the paywall, of course!

  3. #873
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    Doesn't look like much is going to happen until Tiwai is sorted. So much for Origin being "committed" to Contact.

    http://www.nzherald.co.nz/business/n...ectid=11483975

  4. #874
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    afr article says origin may sell 50% of there stake at circa $4.50
    one step ahead of the herd

  5. #875
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    Well, this is another extract from same article,

    "The Australian newspaper reported that there had been talk in the market about the entire stake being sold at $4.50 per Contact share - well below the $5.20 price the stock opened at today.
    That would value the stake at around $1.75 billion, compared its market value of roughly $2 billion.

    But The Australian also reported that sources close to Macquarie had scotched rumours of the block sale taking place at such a heavy discount."

    So its all speculation at the moment.

  6. #876
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    Quote Originally Posted by sb9 View Post
    Well, this is another extract from same article,

    "The Australian newspaper reported that there had been talk in the market about the entire stake being sold at $4.50 per Contact share - well below the $5.20 price the stock opened at today.
    That would value the stake at around $1.75 billion, compared its market value of roughly $2 billion.

    But The Australian also reported that sources close to Macquarie had scotched rumours of the block sale taking place at such a heavy discount."

    So its all speculation at the moment.
    Well somebody knows something (not that they are acting on it) but with speculation out in the market, makes it very easy to disguise insider trading. A please explain should really be issued (not sure on what technical basis) especially given the huge difference in price being speculated.

  7. #877
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    More info from NBR this arvo:

    Some milestones to go before Contact in play, sources say
    Reports from Australia that Contact Energy’s [NZX: CEN] 53% shareholder Origin is close to deciding on a sale of the stake may be premature, New Zealand sources say.
    Potential investors were being sounded out in Australia and Hong Kong by investment bank Macquarie Capital, The Australian said, while the Australian Financial Review said the format of a transaction had been “nutted out” over the weekend.
    New Sydney firm Luminis Partners, created in February by former Caliburn & Greenhill partners Ron Malek, Simon Mordant and Jamie Garis, is reportedly advising Origin on what to do. Mr Garis told NBR he could not comment on client matters.
    However, with an August 3 deadline for a decision on the Tiwai Point aluminium smelter and Contact not due to report its annual results until August 17, potential investors may be unlikely to commit just yet.
    “It’s a tricky time to put a stake out to the market,” said one market source. Origin had shown itself a patient investor in Contact over the years and was unlikely to rush into a sale while conditions were uncertain.
    A sale price of $4.50 a share, as speculated by the AFR, would be “very disappointing” for Origin, he said.
    Contact shares were trading near $5.10 today.
    Another source said while it would make sense to test overseas investor interest since the New Zealand market would struggle to absorb such a large shareholding, at low prices a sale might not fulfil Origin’s needs.
    The Australian company is committed to retaining an investment grade credit rating, downgraded to BBB minus by Standard & Poor’s on April 22. The rating relies on Origin’s ratio of debt to operating earnings and, with Contact contributing to the earnings side of the equation, a sale makes sense only if it can move the debt side of the dial enough to offset the loss of earnings.
    “There will be quite a bit of gamesmanship going on,” he said, referring to investment banks making a play for particular deal structures.
    It is understood that New Zealand institutions have yet to be contacted about their interest in Contact but they are likely to be keen.
    Origin fuelled speculation about a selldown of Contact in a May presentation describing asset sales as among its options to improve balance sheet flexibility.
    A special dividend payment by Contact in June, which used up imputation credits that could be lost in a change of control, was also seen as a pointer.
    Origin told media last month that Contact “continues to form a key part of our Australasian energy markets business.”

  8. #878
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    4.50 probably a good price for them considering contact is losing plenty of customers at the moment dreadful mth for them last mth in fact

    I was at a infratil presentation recently and the dude say he didn't see much synergies between infratil and contact merging
    one step ahead of the herd

  9. #879
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    Quote Originally Posted by sb9 View Post

    "The Australian newspaper reported that there had been talk in the market about the entire stake being sold at $4.50 per Contact share - well below the $5.20 price the stock opened at today.
    That would value the stake at around $1.75 billion, compared its market value of roughly $2 billion.
    .
    So its all speculation at the moment.
    i heard ( so possibly unreliable....) that the $4.50 was Australian dollars....

  10. #880
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    Quote Originally Posted by Crackity View Post
    i heard ( so possibly unreliable....) that the $4.50 was Australian dollars....
    WOuld make more sense - just above $5 Which is similar to other big block transactions recently (ie. just below market).

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