Fonterra's fund announcement: what you say
Company says yesterday's announcement is positive news for its farmer shareholders. Not all NBR ONLINE readers agree.
Fonterra chairman Sir Henry van der Heyden says a $5.50 unit price for its investment fund, and a $525 million pool, is positive news for farmer shareholders.
But the news has split NBR Online readers and is clearly unpopular in some quarters.
"A Harriet" congratulates Fonterra, while another comment says: "Good result. Well thought through and priced well. Well done to Fonterra's board."
However, many commentors are disappointed 42% of units have gone offshore.
"The desired funds would have been covered within NZ," says one.
Another says: "A lot more should have gone to New Zealand investors. This was poorly thought out by the board."
"So much for the small Kiwi investor," says a reader who claims their allocation was cut by 66%.
"Not a good outcome," notes another, who has been associated with Fonterra for 45 years and says their allocation has been cut by 75%.
Regular comment contributor Pablo wonders why New Zealand investors have been scaled back, saying there is no reason why overseas investors cannot buy once trading starts.
One financial cynic says the unit price is a "one-way journey to $10, yielding 3.2%".
"The big brains who designed this mess have replaced redemption risk with supplier flight."
NBR Online staff
Wed, 28 Nov 2012
Wed, 28 Nov 2012
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Fonterra's fund announcement: what you say
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