Hallenstein Glasson attracted takeover speculation yesterday when its former rival, David Wright, raised his stake in the apparel retailer.
Wright - founder of the Max Fashions clothing chain - increased his holding in Hallenstein to 7.1 per cent after buying an additional 2 per cent of the company at $4.75
a share.
This sparked speculation he could be about to make a move, with the share price shooting up 30c to close at $4.75 - its biggest one-day gain since January - having ranged between $4.55 and $3.35 in the past year.
But others played down the likelihood of a takeover, with one analyst saying: "You certainly wouldn't have someone like him buying first then asking for a board seat if he intended to make a move on the register ... I suspect the market is reading a bit too much into it."
Last night, First NZ Capital still had an order for 1.3 million shares, after receiving an order late Monday night to buy 2.95 million shares in Hallenstein.
The brokerage declined to identify the buyer.
Bryon Burke, an equities dealer with ABN Amro Craigs, said if Wright was behind the order - amounting to 2.3 per cent of Hallenstein shares - he would end up with close to 10 per cent.
Hallenstein is New Zealand's third-largest listed retailer and operates the Hallensteins men's and Glasson's women's clothing stores throughout the country.
Wright bought just over 2.9 million shares in the company at an average price of $2.77 between July 2000 and May 2004.
In July, he sold most of his shares in the Max Fashions chain he launched in 1985 to investment funds, for an undisclosed sum.
He is from the family that founded Hugh Wright's - the menswear chain that toppled into receivership in 2002 - and, despite roles in events such as Fashion Week, is not one for publicity.
Wright was overseas yesterday. Hallenstein Glasson is due to release its annual result next Wednesday.
- additional reporting Karen Chan
