The NZX is on a roll with share prices firming and Grant Samuel assessing Fisher & Paykel Appliances' shares to be worth between $1.28 and $1.57 compared with Haier's offer of $1.20 a share.

The benchmark NZX50 Gross Index surged 17.1 per cent over the first nine months of the year with the NZX MidCap and NZX SmallCap outperforming this more widely quoted index.

The disappointing feature of this development is that most major KiwiSaver funds, particularly the $4 billion of default funds, have almost no exposure to the NZX's medium and small sized companies.

Thus the larger KiwiSaver funds have had relatively disappointing returns this year, particularly when compared with the NZX.

Fisher & Paykel Appliances' independent directors were supportive of Haier's offer subject to three conditions, including the offer price being within or above the valuation range as determined by the independent adviser.

Based on this condition the independent directors had no choice but to recommend that shareholders do not accept the $1.20 a share offer.

The problem with independent reports is that they only assess a takeover offer from the target company's point of view,longchamp soldes, they don't have to take into account the position of the bidder.

A simple example of this in ordinary life is if an individual is selling a piece of land and has two potential purchasers; one who owns all the remaining properties on the block and desperately needs to buy the land in order to start a development, whereas the other views it as a simple piece of land.

Obviously the developer will pay a higher price than the individual who views it as a simple, stand-alone property.

The same is true regarding company acquisitions and it can be argued that Haier now needs FPA far more than FPA needs Haier,sac longchamp.

Thus the directors of the New Zealand company are in a strong position to negotiate a higher bid price.

It was the opposite way around three years ago,http://frvabrcromfitchdesoldes.com.

In 2005, FPA began to relocate its manufacturing facilities as follows:

* The company closed its Dunedin facilities.

* It acquired an Italian manufacturing plant.

* Production facilities were moved from Australia and New Zealand to the United States.

* A refrigeration plant was acquired in Mexico,sac longchamp pas cher.

Inventory levels increased, surplus land sales targets were not achieved and the company's net debt ballooned to $459 million.

In 2009, FPA had a $189 million capital raising whereby Haier purchased 58,doudoune moncler.1 million shares at 80c a share and underwrote a one for one rights issue at 41c a share.

As a consequence Haier ended up with 19.9 per cent of FPA at an average cost of 57c a share.

Haier rescued FPA three years ago but there are a number of reasons why it now needs full control of the New Zealand company.

These include:

* Haier grew dramatically when Chinese labour costs were extremely low and, as a result, there was less incentive for it to be innovative in terms of automation. It lags western companies as far as efficient manufacturing is concerned and the acquisition of FPA would help it to make important advances in this area.
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