New Zealand shares rose on Tuesday, led by Fisher & Paykel Appliances on expectation its biggest shareholder, China's Haier, will shortly make a takeover offer.
Telecom and Fletcher Building, the biggest companies on the bourse, were among other gainers.
The NZX 50 Index rose 18.05 points, or 0.5 per cent, to 3744.95. Within the index, 21 stocks rose, 17 fell and 12 were unchanged. Turnover was $108 million.
F&P Appliances rose 7.2 per cent to $1.04, the highest since November 2008.
AMP Capital Investors, which owns 5.2 per cent of the whiteware firm, confirmed it has spoken to Haier about a possible takeover bid, the National Business Review reported.
Haier owns almost 20 per cent and has indicated it may offer to buy the whole company.
"I don't think an announcement will be too far away," said Grant Williamson, director at Hamilton Hindin Greene.
"Investors in New Zealand have built a good premium into the stock - the Chinese will have to offer a pretty nice premium to get investors interested."
Fletcher shares rose 1.1 per cent to $6.62, as the company concluded negotiations with the government on the $300 million design and build for South Auckland's new Wiri prison.
Telecom rose 2.7 per cent to $2.50. The stock offers a dividend yield of about 12 per cent.
"Telecom is improving nicely again following the sell off after their result," Mr Williamson said.
"Investors are buying for yield and it's a good yield stock."
NZN
