Carter Holt Harvey's rising share price has reinforced views Graeme Hart's Rank Group will not secure complete control of the forestry giant.
Hart has spent more than $2.8 billion acquiring about 86 per cent of the company in one of the largest takeovers in New Zealand history.
However, CHH shares
rose 3c to $2.56 yesterday, 6c above Hart's offer price and the highest price since shortly after the bid was launched in mid-August.
"I think they have soaked up as much as they are going to get around the $2.50 mark and those who were inclined to sell have done so," said Brook Asset Management principal Simon Botherway.
He said it was unlikely Hart would get to the 90 per cent needed for compulsory acquisition.
The offer is due to expire on Friday, although market players believe Rank will extend the offer for the sixth time in a bid to get the extra 3-4 per cent it needs.
Rank can keep the bid open until February, but it has picked up few shares since the last extension on December 23.
Broker Brian Stewart, of Forsyth Barr Frater Williams, said people were buying shares in CHH on the view that Hart would turn the company around, rather than a greenmail bid to try to force out a fresh bid at a higher price.
But he said Hart would have his work cut out to extract greater value from the company by breaking it up.
- NZPA
