Adelaide Brighton shareholders appear to have recovered from the abandonment of Boral’s $867 million takeover bid, notes the Sydney Morning Herald. Just three days after Boral said it faced too many obstacles getting its deal through, AdBri shares touched a five-month high of $1.50 yesterday before closing up 1c at $1.49. Considering AdBri shares slumped to $1.17 when the Australian Competition and Consumer Commission rejected Boral’s $1.60 a share takeover bid in May, it appears the market’s view on AdBri has considerably brightened.
At AdBri’s recent annual results presentation managing director Mark Chellew complained the market was yet to recognise the potential of its lime business. He forecast a 20 per cent increase in sales over the next four years. But aside from recent rises in cement prices, it appears the market is finally starting to get excited about lime. UBS upgraded its price target on AdBri from $1.75 to $1.80 yesterday, predicting an upsurge in lime demand, thanks to the expanding resource sector.