Advertisement

Robert Fleming issues Cheung Kong warrants

Reading Time:2 minutes
Why you can trust SCMP
0

ROBERT Fleming is issuing covered warrants worth $144 million on Cheung Kong Holdings, almost identical to an issue aborted on Friday by Barclays de Zoete Wedd (BZW).

Robert Fleming has added to an apparent victory over its rival by placing 40 million warrants - against the 30 million planned by BZW - because of high demand.

Mr John Knox, manager of derivatives at Jardine Fleming, which is jointly managing the issue, said last night that Cheung Kong had been informed of the issue.

Asked if Cheung Kong had objected, he replied: ''I don't think so.'' The 18-month call warrants will be issued at $3.60 and will have an exercise price of $20.50, slightly below yesterday's Cheung Kong closing price of $20.60.

This compares with the 18-month call warrants aborted by BZW on Friday, priced at $3.55 and with a strike price of $20.20, the same as that day's closing price.

BZW said the issue had to be cancelled because it discovered a conflict of interest.

Mr Knox said the Fleming warrant was not simply a copy of BZW's.

Advertisement