Wednesday, July 25, 2012


FNN: jumps 4.5% to $8.36 in high volume of ~3% of shares traded on the SGX after a series of large trades, mirroring moves the stock made in the day's leading up to the announcement OCBC and Great Eastern were in talks to sell their APB and F&N stakes. Players are likely positioning on the outcome of Heineken's $50/sh offer for F&N's APB stake, with the board's decision due Friday. Speculation that some potential scenarios for the Heineken bid outcome could lead to a breakup of F&N's disparate F&B, property and publishing businesses may also be bolstering the stock. Heineken's offer price for APB, still above the $49.01 currently traded price, likely may be leading to a re-pricing of F&N's sum-of-the-parts valuation also. The intraday high of $8.47, its highest in at least twenty years, likely offers a near-term cap, while the $8.88/share price Thai Beverage paid for its F&N stake may offer a longer-term cap.

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