AMP Capital takes advantage of strong Telecom price to sell
The fund manager has sold down its stake in Telecom to below 5%, taking advantage of a stock price trading around its highest levels in four years.
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BUSINESSDESK: AMP Capital Investors (New Zealand) has sold down its stake in Telecom to below 5%, taking advantage of a stock price trading around its highest levels in four years.
The Wellington-based fund manager, one of New Zealand’s largest, sold 18.9 million shares of Telecom between April 1 and July 7, reducing its stake to about 4.9% from 5.7%.
Shares of Telecom, which spun off its Chorus network company in November, fell 0.9% to $2.56 and have climbed 22% this year. They traded as high as $2.75 on May 10, the highest since August 2008.
The stock is rated a "hold" based on the consensus of 10 analyst recommendations compiled by Reuters with a price target of $2.33. The stock has a dividend yield of 11.6%.
Analysts say the company may face more intense competition from Vodafone, which this week agreed to acquire Telstra’s local TelstraClear unit, giving it about 25% of the fixed-line market and increasing is dominance in mobile calling.
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AMP Capital takes advantage of strong Telecom price to sell
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