Asia stocks hit 6-wk high

GLOBAL MARKETS

Asian stocks climbed to a six-week high, buoyed by record takeover proposals in Australia for Coles Group and Rinker Group. "The takeover theme has been one of the main drivers of the market for about a year, and it doesn't look like it's over just yet,'' said Jason Teh, who helps manage about $4.3 billion at Investors Mutual Ltd in Sydney.

BHP Billiton Ltd and JFE Holdings Inc rose after copper prices advanced to a five-month high and Baoshan Iron & Steel Co said its profits may double. Sun Hung Kai Properties gained on a newspaper report that said Hong Kong property sales jumped sixfold during the Easter break.

The Morgan Stanley Capital International Asia-Pacific Index added 0.5 per cent to 147.68 as of 7.13 p.m. in Tokyo, its highest since February 27. A gauge of materials stocks rose 1.4 per cent, the most among the MSCI index's 10 industry groups.

Japan's Nikkei 225 Stock Average slid 0.5 per cent from a six-week high. Benchmarks in Australia, China and Singapore closed at records. Other measures gained, except in South Korea, Taiwan and New Zealand. Toyota Motor Corp. and Taiwan Semiconductor Manufacturing Co. fell as some investors judged recent gains to be excessive.

Coles, Australia's second-biggest retailer, climbed 2.1 percent to A$17.33. Kohlberg, Kravis & Roberts Co. told the company it may top a A$19.7 billion ($16.2 billion) takeover offer from Wesfarmers Ltd. The Coles board yesterday recommended that shareholders not sell their shares following Wesfarmers's offer last week.

Woolworths Ltd., the country's largest retailer, and Tesco Plc are among at least four parties who have joined the bidding for Coles, the Sydney Morning Herald reported today, without saying where it got the information.

"There may be some other people in the wings having a look at Coles,'' said Bill Chatterton, director of equities at ABN Amro Morgan Ltd. in Brisbane. "The company is on the selling block and it will ultimately go to the highest bidder.'' Rinker, the largest maker of cement blocks in the U.S., rose 1.8 percent to A$18.81. Cemex, the world's third-largest cement producer, increased its bid for the company by 22 percent to $14.2 billion, winning Rinker's approval and ending a five-month hostile takeover battle.

Cemex raised its cash offer to $15.85 a share, from $13 previously, Sydney-based Rinker said in a statement to the Australian Stock Exchange today. Shares of Rinker closed at A$18.48, or $15.14 at today's exchange rate, on April 5, the last trading day before Easter.