NZ stocks: Tranz Rail takeover bid dominates sharemarket

12.00pm

Early trade on the New Zealand sharemarket today was dominated by news of a takeover bid for embattled rail operator Tranz Rail by United States company RailAmerica.

Broker Sam Macdonald of Direct Broking said the takeover bid was the focus of everyone's attention with the company offering 75c per share for Tranz Rail's stock.

The offer was conditional on receiving acceptances for at least 90 per cent of Tranz Rail shares.

Tranz Rail shares soared 25c, or more than 50 per cent, to 78c after the offer was announced this morning. Shortly after midday they had settled back somewhat to 73.

Elsewhere the market was fairly lacklustre to begin with, easing slightly in early trading before picking up later in the morning. By mid-session the NZ50 Gross Index had gained 0.029 per cent taking it to 2017.86. The NZSE40 Capital Index was up 0.03 per cent to 1991.264.

Meanwhile, Mr Macdonald said another stock making big gains this morning was Vending Technologies. The company's shares jumped yesterday on news the company was entering the United States market.

After closing 30 per cent higher last night at 105 the stock had gained a further 13c by midday taking it to 118.

In offshore markets overnight stocks eased in the US with the tech-loaded Nasdaq composite falling 4.77 points, or 0.31 per cent, to 1,534.91 and the blue-chip Dow Jones industrials lost 31.15 points, or 0.36 per cent, to 8,648.10.

London's FTSE benchmark index closed down 24.9 points or 0.62 per cent at 3,975, having retreated from an earlier rise to 4,023.2 as Wall Street turned lower.

In Tokyo the Nikkei average finished at a five-week high on Wednesday, bolstered by a four-per cent rise in Sony Corp.

Movers on the the New Zealand market at shortly after midday included AMP which has its AGM today down 15c to 565, Carter Holt Harvey down a cent to 164, Contact Energy down 2c to 453 Fletcher Building down a cent to 326, Infratil up 4c to 189, new listing Promina up a cent to 219, Sky TV up 2c to 407, and the Warehouse down 10c to 458.

Turnover at 11am was $55.7 million on 28.5 million shares and there were 38 r ises and 35 falls on 114 stocks traded.

- NZPA