KEY POINTS:
Asciano
The stevedore and rail group Asciano is trying to reassure the market that its unpopular plan to mount a takeover bid for Brambles could change.
Asciano said it no longer saw its 4.1 per cent holding in the pallet-owning Brambles as a long-term investment.
Investors have been concerned and puzzled over AIO's takeover designs on a company more than three times Asciano's value.
The deal would require debt and Asciano already faces an estimated $50 million in interest costs on holding on to its Brambles stake.
Asciano has been designed as a utility-type investment offering reliable income streams. This makes it less appealing to New Zealand investors as franking credits do not transfer over.
Warehouse
Shares in The Warehouse slumped on fears that the Commerce Commission could appeal against a High Court decision allowing supermarket companies Foodstuffs and Woolworths to bid for the Red Sheds.
The prospect of this happening appeared in a law firm's newsletter, quickly setting off a sell down in Warehouse stock.
The Warehouse would be a great investment at lower price levels but, at the present price, it carries a takeover premium in the shares that will disappear if no takeover takes place. However, there is a chance the takeover will occur.
Woolworths and Foodstuffs, which each own 10 per cent stakes in The Warehouse, are already in negotiations with The Warehouse board and its founder and 53 per cent shareholder, Stephen Tindall.
It would be a pity if The Warehouse disappeared from the sharemarket because it is among our most powerful brands and a good cash generator from its sprawling network.
