Fletcher Building is in a trading halt on NZX pending a material announcement. Shares in the company have fallen 5% in the past three months and last traded at $7.85.Speculation is running hot in the market with a number of theories including a possi
Fletcher Building is in a trading halt on NZX pending a material announcement.
Shares in the company have fallen 5% in the past three months and last traded at $7.85.
Speculation is running hot in the market with a number of theories including a possible acquisition or sale or even an earthquake-related construction contract.
Forsyth Barr analyst Rob Mercer said he didn't want to speculate on the announcement but said it was unlikely to be an earnings downgrade.
"The earnings spread they gave at their AGM was so wide a downgrade would constitute a substantial deterioration or some issue," he said.
"I really don't know what the announcement is – I've been trying to fish around but it's a tightly-held secret."
However, he said he hoped the announcement would be a purchase of a "nice Australian company" or something similar.
Mr Mercer said barring any major changes Fletcher Building would probably trade at about $8, plus or minus 50c, for a while, with building activity not likely to pick up until 2012.
MORE TO COME
