FNN

FNN: New York-based Davidson Kempner, which manages US$19b, has raised its F&N stake since Nov to just under 5%, valued at nearly $700m at yday's close of $9.69/ sh, in an attempt to profit from a takeover battle between TCC Assets and OUE for FNN. That compares with the <1% it owned before the Thai takeover interest last July. Sources say Davidson Kempner, which declined to comment, would reap a massive arbitrage profit if F&N fetched much more than the $9.08 a share on the table from OUE. The Thais offered $8.88/ sh. Davidson Kempner's role in the F&N saga is unusual for its size and because one of the bidders, in addition to attempting to buy out the company, is trying to increase its shareholding. At least one instance has emerged in which TCC offered to buy F&N shares from existing shareholders, only to be rebuffed, fuelling hopes of higher bids. TCC has extended its own offer for the fifth time to Jan 10, while OUE extended its offer to Jan 14 According to Singapore Takeover rules, an offer can run for a max of 60 days. This gives OUE until Feb 4 to work with. TCC needs the Securities Industry Council’s permission to extend the offer any further from the Jan 10 deadline, as his initial max offer period has expired.