14 Dec 2009

Investors to keep close eye on Allied share price

9:25 am on 14 December 2009

Investors in Hanover Finance and Allied Farmers will be keeping a close eye on the rural company's share price in coming days.

Allied Farmers wants to take over the rural finance company's troubled loan books, in exchange for issuing shares and its shareholders have approved the deal.

Under the proposal, shares in the Allied Farmers will be issued at the volume weighted average price during trading over the five days before Hanover investors vote on the deal on Wednesday.

Allied Farmers' share price fell 8 cents on Thursday, after a selloff, and closed unchanged at 20c on Friday.

The executive director of Milford Asset Management, Brian Gaynor, says the drop was not unexpected, but the price will be closely watched in coming days.