Fisher & Paykel Appliances said yesterday a slump in its share price over the past year has made it more vulnerable to a takeover reports the New Zealand Times.
The whiteware maker is reported to be struggling with the strong New Zealand dollar, material prices and tougher markets, said its cost-cutting programme was on track, but it would not be drawn on whether it would result in higher profits.
Shares in New Zealand’s largest appliance maker have fallen to the lowest level since the top-10 company was created from the split of local manufacturing icon Fisher & Paykel in 2001, raising the prospect it could become attractive to overseas buyers.
“That could be a credible proposition,” managing director John Bongard told Reuters in an interview. He said, however, any prospective buyers were likely to be finding their own share prices under pressure.
Shares in the kitchen and laundry appliance maker closed yesterday at $1.96. Its shares traded as low as $1.87 on June 23, almost half their value of a year ago.
In the face of uncertain markets, earnings would be underpinned by the company’s cost reduction strategy, Bongard said.