New Zealand shares fell, led by Goodman Fielder after the company scotched media reports of a takeover offer and telecommunications company, Telecom declined from its highest level since August 2008.
The NZX 50 Index fell 14.98 points, or 0.4 per cent, to 3616.19. Within the index, 20 stocks fell, 19 rose and 11 were unchanged.
Turnover was about $138.8 million, above the daily average this year.
The decline was led by Goodman Fielder down 4.1 per cent to 70 cents.
The food ingredients manufacturer denied reports it has received an offer from the world's largest palm oil processor, Wilmar International.
Goodman posted a narrower annual loss this week.
"It is surprising that a little whisper can create a share price movement," said Rickey Ward, domestic equities manager at Tyndall Investment Management.
"Anybody can speculate but that company has gone through some tough times."
Telecom, the largest company on the NZX 50, fell 2.8 per cent to $2.75.
The stock has gained 32 per cent so far this year and currently has a dividend yield of 10.9 per cent.
"People have been chasing yields for 18 months or so," Mr Ward said.
"Telecom falls into that camp - yesterday there was some aggressive buying."
Fletcher Building shed 0.9 per cent to $6.47.
Trade Me fell 0.5 per cent to $3.85. Ellerston Capital, a fund manager controlled by Australian billionaire James Packer's family interests, has emerged as a substantial holder of shares in New Zealand online auction site, with a 5.18 per cent stake.
The gains were led by Pumpkin Patch climbing 13 per cent to $1.03.
The children's clothing chain full-year profit before one-time items was about $10.1 million for the year ended July 31, beating estimates as bank debt and inventory levels fell and online sales rose.