NZ stocks: Contact shares dump 13c in reasonable trade

6.00pm

Shares in Contact Energy dumped 13c of their value after the firm's independent directors urged minority holders to not accept the takeover offer by Australian firm Origin Energy.

Origin is offering 557c per Contact share. Today Contact shares closed down 13c at 590. A valuation by Cameron & Company had placed their worth in the 569c to 629c band.

Four of the energy firm's independent directors said Origin's offer price was at "a discount to Contact's recent share price history".

Further, it did not reflect Contact's strong position in the electricity and gas markets, or the growth opportunities available to it.

In July Origin bought a 51.2 per cent stake in Contact from the United States power firm Edison Mission Energy for 567c a share

Greenslades broker Paul Valk said the dip in Contact shares came amid a reasonable trade in what was usually a dull session.

"I'm surprised it (Contact) is down 13c... I thought the (valuation) range might have led to a bit of upside," he told NZPA today.

"I think the valuation paints a good picture of (Contact's) earnings future," Mr Valk said, noting the dip could also be a consolidation after Contact's run-up since mid September.

Meanwhile, the benchmark NZSX-50 index closed up 4.16 points at 2810.74. The NZSX-All capital index was up 0.39 of a point at 934.95.

Market turnover was $88.7 million, including $34.4m worth of Telecom, which closed up 3c at 590.

Included in the 165 stocks traded were 61 rises and 54 falls.

Vertex was up 2c at 167 after about 20 per cent of the firm's shares changed hands at 205c each.

Two firms, Gould Holdings and Masthead, bought the Vertex shares, which resulted in changes to its board of directors.

Fisher & Paykel Healthcare continued its run, today up 35c at 1525. They peaked at 1538c during the session.

"It (Healthcare shares) didn't look like it was going to push through the 1500c mark and now we're talking 1538," Mr Valk said.

Clothing retail Hallenstein Glasson was up 6c at 369 after last week issuing a healthy full year profit.

Pumpkin Patch was down 5c at 205, Mr Valk noting that it was "obviously just people digesting last week's profit announcement, which was very good."

Sky City Entertainment was down 11c at 453, after going ex-div at 15.5c per share (cps).

Ports of Tauranga was 5c at 535, having gone ex-dividend at 13cps

Telstra was down 5c to 505 after this morning announcing a A$750m ($810m) off-market share buy-back plan.

Telstra expects to return A$1.5 billion to shareholders each year for the next three years, through special dividends and/or share buy-backs, subject to maintaining board approved target financial parameters.

Other stocks on the move included: Air NZ down 2c at 180, Baycorp Advantage down 4c a 328, Cavalier down 5c at 490, Genesis down 9c at 56, Mooring Systems down 5c at 390, NZ Refining down 111c at 2139, Sanford down 13c at 440, TrustPower up 10c at 470, and The Warehouse down 1c at 426.

- NZPA