The sharemarket opened higher today and improved marginally during the morning with most interest centred on Contact Energy.
Edison Mission Energy said it had acquired 21.5 million - or 3.7 per cent - of Contact shares at $3.10 a share - off market - and was seeking the same amount on market.
The price was the same as Contact's issue price in May, 1999.
Apart from Contact's dominance, the market was fairly mixed with no clear direction, JB Were's Peter Stokes said.
United States-based Edison Mission said its brokers, UBS Warburg New Zealand Equities and Credit Suisse First Boston NZ Securities Ltd bought the shares on behalf of EME Pacific Holdings -- its New Zealand holding company.
It said it was seeking a further 21.5 million shares at the same price in parcels of no more than 5000 shares from each shareholder - on-market.
During early trading, confusion reigned as to whether Edison Mission had completed its on-market stand.
Some brokers said - by 11am - that the second stand had been completed and only the administrative angle of counting hundreds of parcels needed to be sorted.
Both Edison's brokers, however, denied it had been filled.
"I don't think it's complete yet. There are still trades going through the market," a CSFB spokesman said
A UBS Warburg spokesman said: "We are waiting on confirmation from the exchanges and shareholder amounts."
Asked why the Contact price had fallen to $2.85 - down 8c on yesterday's close, against the $3.10 price being offered by Edison - the CSFB spokesman said it was because some traders were selling parcels of larger than 5000 shares, above the maximum size Edison was accepting in its stand that is targeted at Contact's 130,000-odd small shareholders.
At 11am Contact was trading at $2.84 - down 9c.
Its ordinary shares topped turnover with 21.53 million worth $66.74 million.
The ordinary shares (in parcels of 500 or less) were trading at 310.
At 11am, the NZSE-40 index stood at 2095.8259 - up 8.25 points - or 0.40 per cent and fractionally higher than the opening 2095.48, and the NZSE-SCI capital index was 10.47 points - or 0.20 per cent - higher, at 5305.29, up from an opening 5292.93.
Turnover at 11am was 29.48 million shares, worth $92.16 million and of the 107 shares traded, 31 rose and 28 fell.
Telecom was 10c higher at 606 on turnover of 313,277 shares worth $1.89 million.
Air New Zealand B shares were 4c higher at 139 and the A shares were steady at 99c. Air New Zealand yesterday said it would fly the BAe146 "whisper jets" previously used by its failed rival, Qantas New Zealand and is offering to employ about 100 former Qantas staff.
Trans Tasman Properties was steady at 22. Yesterday, irate shareholders gave the company's directors a roasting at the annual meeting in Auckland and passed a vote of censure of the company. Chairman Don Fletcher was forced to use proxies to elect two of three directors standing.
INL was a cent lower at 374. Its price range to lift its stake in Sky TV was judged to be not fair by an independent appraisal report issued yesterday.
Trustpower was 5c higher at 355. Yesterday Australian Gas Light threw its hat into the ring for more shares in the Tauranga-based energy company.
New Zealand's largest winemaker Montana was steady at 480 and Lion Nathan was steady at 485.
Richina Pacific was a cent lighter at 60.
Building products and construction company, Fletcher Building was steady at 238 and Forests lost a cent to 32.
Among other moves, Advantage Group lost a cent to 84, The Warehouse gained a couple of cents to 565 and Natural Gas Corp was a cent higher at 126.
Drinks company, Frucor, was steady at 158, as was Baycorp at 1230, Pay TV operator Sky TV rose a cent to 380 and casino operator, Sky City was steady at 1000.
- NZPA
Sharemarket improves slightly during morning trading
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