Fletcher Building chief executive Jonathan Ling. Photo / Paul Estcourt
Speculation was mounting late yesterday about a deal being hammered out between top executives of Fletcher Building and Crane Group over the A$740 million ($954 million) takeover.
Fletcher was tipped to have increased its offer price but by close of trade on the NZX, no announcement had been made.
The
moves followed surprise trading halts issued by both companies to the NZX and ASX. A statement is expected this morning.
Executives indicated it might take all day before information was released and not to expect any quick moves.
Fletcher's Philip King and Crane's Sue Cato refused to explain what was happening or indicate any shift in either company's position.
The two are at loggerheads over Fletcher's surprise takeover move - Crane has told its shareholders to reject the offer.
But late yesterday, the Australian newspaper reported Fletcher had entered serious negotiations with Crane in a bid to clinch its takeover of the plumbing supplies and plastic pipelines maker.
If that is true, it would be the first time the companies have formally engaged since the New Zealand building materials company launched its hostile takeover offer for Crane just before Christmas, the newspaper said.
Speculation was that Fletcher might have offered to raise its offer to about A$10 a share to secure its bid, after Crane released information from Ernst & Young finding Fletcher's offer was not fair or reasonable.
Speculation about negotiations follows a parting of ways between the two companies, after discussions did not come to anything last year.
However, Fletcher chief executive Jonathan Ling has insisted in the past few weeks that relations are professional and cordial, despite Crane telling its shareholders to spurn Fletcher's offer.
Crane shareholders have until February 25 to take up the scrip and cash deal.
The initial A$740 million offer by Fletcher was priced at A$9.35 a share, made up of A$3.47 cash and one Fletcher share for every Crane share.
Fletcher closed at $7.89 yesterday, while Crane's shares closed at A$9.58.
