An Australian investment company has revealed it has a 5 percent stake in the troubled Fletcher Building group.
Fletcher Building announces a $486 million increase in the projected losses for Fletchers' troubled Building and Interiors (B&I) division on 16 major construction projects. Photo: RNZ / Dan Cook
Ellerston Capital filed a notice with the Australian Stock Exchange on Friday evening that it is holding shares in Fletcher Building on behalf of other unnamed investors.
"The shares ... are owned by third party accounts under the discretionary investment management of Ellerston Capital Limited," the company's notice said.
Fletcher Building shares surged on Friday amid speculation that Australian conglomerate Wesfarmers, which owns the Bunnings building products and homeware chain and K-Mart, had bought a stake of about 3 or 4 percent.
Ellerston's notice showed it had been buying Fletcher Building shares since early December last year, with the pace quickening this year as the company detailed massive losses on major building projects.
Fletcher said on Friday it was not aware of Wesfarmers buying any shares.