NZ's Steel & Tube sees worst day in over 2-months after Fletcher withdraws offer

Steel & Tube Holdings

15/10/2018 24:33

(Recasts, adds details on offer withdrawal, analyst comment,
updates share movement and milestones)
    ** Shares of Steel & Tube Holdings Ltd  STU.NZ  reverse
course to fall 6.7 pct to a near-two week low of NZ$1.40 after
Fletcher Building  FBU.NZ  withdraws offer for the steel
distributor 
    ** Fletcher withdraws offer due to lack of support from
Steel & Tube’s Board to progress the proposal "in a timely
manner"
    ** Grant Davies, investment advisor at Hamilton Hindin
Greene, says that with the offer off the table, the company
valuation will depend on the firm's performance
    ** Davies said he did not expect any other offers for the
company
    ** Steel & Tube's shares had risen as much as 15.3 pct to
their highest since May 21 earlier in the session after co
turned down a NZ$315.4 mln ($205.1 mln) sweetened takeover offer
by Fletcher, saying it undervalues company  urn:newsml:reuters.com:*:nL3N1WU0D9
    ** New offer price of NZ$1.90/share was about 11.8 pct
higher than previous offer and a 26.7 pct premium to last close
    ** Stock posts biggest intra-day pct drop since Aug. 8
    ** More than 782,800 shares change hands, compared with the
30-day average of about 300,000 shares 
    ** Up to last close, stock had fallen about 23 pct this year
    ** Shares of Fletcher trade 0.5 pct lower, making it the top
pct loser on the benchmark S&P/NZX 50 index  .NZ50 
    
    ($1 = 1.5378 New Zealand dollars)

 (Reporting by Aditya Soni in Bengaluru)
 ((Aditya.Soni@thomsonreuters.com; +91 80 6749 1783; Reuters
Messaging: Aditya.Soni.thomsonreuters.com@reuters.net))