The investment activity of one of the world’s largest institutional fund managers is fuelling the prospect of another busy year for corporate deal-making.
Since early December, US-based Capital Group has built a 7.9% stake in Kiwi whiteware manufacturer Fisher & Paykel Appliances.
Other global institutions have also been buying the stock.
Market watchers say the institutional investors may be positioning themselves for an anticipated bid for F&P Appliances from the likes of Whirlpool, the world’s biggest appliance maker.
F&P Appliances already has an international tie-up with Whirlpool to share technology and source components.
Under the deal F&P also makes appliances to be sold under the Whirlpool brand and markets its own products through Whirlpool distribution channels.
The arrangement has helped F&P grow its market in Europe and the United States, and the Kiwi company bought a California-based cooking appliance maker last year to build on its US exposure.
With a share register that lacks a major shareholder, F&P Appliances could well join a growing list of Kiwi companies where deal-making has become the name of the game.
From stuff.co.nz