Published: Friday August 3, 2012 MYT 9:31:00 AM
F&N surges to new high on Coca-Cola rumoured takeover
KUALA LUMPUR: Shares of Fraser & Neave Holdings Bhd (F&N Malaysia) extended its gains on Friday, rising to another record high of RM20.28 on Friday on market talk Coca-Cola Co might be keen in the beverage business of Singapore-listed Fraser & Neave Ltd (F&N Singapore).
At 9.12am, it was up 28 sen to RM20.28 with 14,100 shares done.
The FBM KLCI fell 6.04 points to 1,627.41. Turnover was 79.10 million shares valued at RM29.72mil. There were 89 gainers, 106 losers and 140 counters unchanged.
On Thursday, F&N Malaysia jumped 88 sen, or 4.6%, to close at RM20.
Bloomberg reported on Thursday that Coca-Cola, the world's largest soft-drinks manufacturer, was exploring a bid for F&N Singapore's beverage business.
The deal, it reported, could value F&N Singapore's beverage business, which included its dairy and soft-drinks operations that are held under F&N Foods Pte Ltd and F&N Malaysia, at US$3bil (RM9.39bil).
However, CIMB Equities Research said in the absence of an official announcement on the potential M&A, it maintained its Underperform call.
"A potential bidding war for the F&B business, however, could lead to an M&A premium," it said.