The sharemarket was weak again yesterday as Telecom continued to fall.
The NZSE-40 capital index was down 21.51 points at 1958.13.
Two key developments took place after the market closed - the Australian Stock Exchange called off the proposed merger with its New Zealand counterpart, and Montana questioned Lion's controversial share
purchases.
Telecom, down 19c at $5.03, was the major decliner of the day, David Cleal of JB Were said.
The company, led by Theresa Gattung, had a mixed day after its successful bid for 12.12 per cent of Sky TV on Wednesday. "The market seems a little bit uncertain about the Sky TV move, and its implications," Mr Cleal said.
Sky TV was also hammered, down 29c at $3.46, reflecting market confusion about Telecom's strategy.
Telecom also appeared to be out of the race for the mobile assets of Australian telco Cable & Wireless Optus, with the wealthy Singapore Telecommunications likely to emerge with the spoils.
After market, New Zealand's biggest winemaker formally challenged the manner of the purchase by Lion Nathan in increasing its stake to 51 per cent, trouncing an earlier bid by British liquor giant Allied Domecq for 100 per cent of the company.
Montana's independent directors last night said the company had requested the Market Surveillance Panel to conduct an investigation into Lion Nathan's acquisition of shares.
Earlier, Montana had closed down 3c at $4.02, and Lion Nathan gained 5c to $4.75.
Elsewhere on the market, Natural Gas shed 2c to $1.36 after saying its net profit for the six months to December rose only 51 per cent to $31 million - despite a tripling of sales following the purchase last year of TransAlta.
Air New Zealand shares continued to nosedive following its disastrous half-year results on Tuesday. The A shares closed down 5c at $1.43 and the Bs shed 5c to $1.83.
Fletcher Energy was down 15c at $8.80 after US associate Capstone Turbines lost more than 7 per cent in value overnight Wednesday to $US25.15.
Building was down 2c at $2.29 and Forests rose 1c to 32c.
Auckland Airport lost 2c at $3.45, AMP shed 10c to $23.20 and Contact Energy was down 1c at $2.94.
- NZPA
