CATCH-UP/ The Week in Review
* GUINNESS Peat Group has recharged its war chest to around $660 million with the sale of its 19.4% stake in Australian Wealth Management, the company it spun out of Tower Group. But analysts are not expecting any quick reinvestment of the money. Executive director Gary Weiss said GPG would continue to evaluate opportunities. However, analysts said GPG was presently consumed with Coats Plc, the British thread maker which is GPG’s biggest investment but which has not been performing well.
* HOUSE prices hit a record high in March, with the nation median price reaching $343,500, 13.7% above the same time last year. Once again, a hot Auckland market has been the driving force where the median price is $443,000. The rises come despite the Reserve Bank raising official cash rates early last month, and banks increasing fixed mortgage rates, which finance 80% of new homes. While economists have warned the house price rise rate cannot continue, there is no sign yet of a consistent cooling.
* AIR New Zealand shares were trading at a more than three-year high of $2.67 on Friday after the company earlier reported its planes were flying 79.5% full, and year-to-date group-wide yields had improved 10.1%. Besides sweet trends in the global airline industry, the airline has benefitted from focussing on cost reductions, and routes that were profitable, said analysts.
* ANDREW Kelly is the chief executive officer of BioPacific Ventures, a biotech company which featured in a Business section story last week. Andrew Bagnall, whose name appeared in the story, is founder of travel group Gullivers. The Sunday Star-Times apologises to both men for the error.
* AIRWORK, a New Zealand aviation company with extensive charter, freight and helicopter services in this country, will launch a freight airline in Australia at the end of this month. Using three Boeing 737s, it will fly freight throughout Australia for listed logistics company Toll Holdings, which in New Zealand owns Toll Rail and the Cook Strait Interislander. Toll had said Virgin Blue, owned 62% by Toll, but Airwork managing director High Jones said Toll was not involved in the venture.
* TELECOM has done a deal it says will enable coverage to be extended to more than 180 countries. The deal is with Hong Kong mobile operator CSL, which would require just one number, one mailbox and one bill for Telecom customers with WorldMode phones. While WorldMode phones operate on both Telecom’s CDMA standard as well as the more widespread and rival GSM network, Telecom customers have so far had to use two numbers.
(c) 2007 Sunday Star – Times; Wellington, New Zealand. Provided by ProQuest Information and Learning. All rights Reserved.