Fingers, dykes and Fonterra’s $50m share buyback

The Fonterra buyback aimed at lifting the share price strikes me as akin to the little boy putting his finger in the dyke. (Image: Getty)

Jenny Ruth

Mon, 13 Jun 2022

Fonterra’s plan to spend up to $50 million on a buyback aimed at lifting the share price strikes me as akin to the little boy putting his finger in the dyke in the Netherlands.Or is it throwing good money after bad?That $50m looks pretty inadequate ammunition to plug the more than $3.5 billion gaping hole of value destruction the cooperative suffered when its shares sank as low as $2.22 late last month.But there’s no denying Wednesday’s announcement provided at least a temporary boost; the shares peaked at $2.97 after it, claw...

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