Renewed confidence that Australia could be emerging from its longest housing slump since the Great Depression helped the beleaguered paint maker Wattyl stage another healthy rally yesterday.
Wattyl rose 5.5c to 76c, well up on the near three-decade low of 37c reached in February.
The company has been under assault not only from the Orica-owned Dulux and PPG-owned Taubmans but last year's entry of Japan's Nippon Paint in Bunnings stores (at Wattyl's expense).
Meanwhile, talk of a takeover continues. The de Fazio family of Melbourne is seen as a possible buyer, after emerging as a substantial shareholder in February. The de Fazios, in control of the chemical and pigment maker Acquos, helped advise on Allco Equity Partners' failed $3.25-a-share bid for Wattyl in late 2005.
There is also speculation PPG and Nippon Paint may have an interest in buying Wattyl's brands.
The only thing clear is that any new offer will be much lower than the $3.60-a-share Barloworld bid that trumped Allco Equity's in 2006 but was ultimately rejected by the competition regulator.
WYL Price at posting:
78.5¢ Sentiment: Buy Disclosure: Held
