NZ stocks: Frucor's future in the limelight

By ELLEN READ markets writer

Frucor's fortunes after the takeover offer by French giant Groupe Danone will be the centre of attention this week.

Danone has offered $2.35 a share for 100 per cent of the beverage maker.

An independent valuation of Frucor and the company's independent directors' recommendation on the offer will be known this week.

Shareholders have been urged to wait for these before making a decision.

The company's share price fell last week after news that major shareholder Pacific Equity would sell its 38 per cent stake to Danone.

Frucor closed at $2.41 on Friday.

Tomorrow, Telecom will release its first-quarter results.

As the country's largest listed company, Telecom has a 21 per cent weighting in the Top 40 so its fortunes affect the whole index.

Analysts expect a net profit of just under $150 million - down on the previous corresponding quarter because of sluggish expansion across the Tasman.

It will be an historic week for Fisher & Paykel because of the trading debut of its new standalone entities - healthcare and appliances - on Wednesday.

Fisher & Paykel is dividing because its slow growing home appliance business has led investors to mark down the value of the expanding health enterprise.

Shares in the healthcare company are due to trade on the Nasdaq on Wednesday (NZ time).

The indicative price range in the US prospectus is $US16 to $US18 ($38 to $43) per American depositary share.

The NZSE Top 40 has regained most of the ground it lost after the September 11 terrorist attacks.

It finished at 1958 on Friday, down 1.2 per cent for the week but just 0.3 per cent lower than its pre-September 11 level.