F&N shares slip 5pc as Thai takeover seen fizzling out
SINGAPORE, July 19 — Shares of conglomerate Fraser and Neave fell as much as 5.2 per cent to a one-week low on expectations that a takeover bid for the company is unlikely to materialise.
Late yesterday, Thai Beverage said it will buy a stake in the conglomerate from Oversea-Chinese Banking Group .
Thai Beverage, controlled by tycoon Charoen Sirivadhanabhakdi, agreed to buy a 22 per cent stake in F&N from Oversea-Chinese Banking Group OCBC.SI, its insurance unit and the Lee family, which is the banking group’s biggest shareholder.
By 0618 GMT, F&N shares were 4.5 per cent lower at S$7.60 (RM19) with a volume of 8.5 million shares, 2.6 times its average daily volume over the last five sessions.
“The share price had surged on anticipation of a play on the stock,” said one analyst. “It looks like the general offer is not going to happen. It is left to be seen to what extent the board with different parties will work with each other” said the analyst, who was not authorised to speak to the media. — Reuters