Investors Discount Fai On News Of Adler Heart Attack

Sydney Morning Herald

Wednesday December 7, 1988

By ALAN DEANS Investment Editor

Investors reacted nervously yesterday to news that sharemarket entrepreneur Mr Larry Adler had been hospitalised after suffering a mild heart attack.

The share price of his insurance and share trading vehicle, FAI Insurances Ltd, plummeted 24c to $3 late in the morning after rumours about Mr Adler's health swept the market.

That is the lowest level that the stock has traded at since October 1986.

The price regained its strength later in the day, however, and closed at$3.20 a share.

Mr Adler's son, Rodney, himself an FAI director, confirmed his father had suffered a heart attack on Saturday evening.

"He is very chirpy today," Mr Adler said. "He is even questioning the medicine that he is receiving."

Stockmarket commentators said they were comforted by comments that Mr Adler should be back at the helm of his company after Christmas.

"Larry is the driving force behind the stock and he is its public perception," said one analyst. "Rodney does not command the respect that his father does."

Another analyst said the news would be a negative influence on FAI's stock price.

He said the price had been heavily discounted in recent weeks, although it was trading well above its net tangible asset backing of $2.30 a share.

"There must come a time when the stock becomes cheap enough for Mr Adler to start buying the stock, or privatise the company," he said.

Mr Adler was rushed into intensive care after suffering the attack while lying on his bed. He is expected to remain under close scrutiny until late this week.

Mr Rodney Adler said the family was "very sensitive" about the health of his father because he had been a diabetic for 30 years.

He said the extent of Mr Adler's heart problems would not be known until test results are received, but he added that it was a mild attack.

Mr Adler previously suffered a attack nine years ago, but that, too, was minor. He had been in good health recently and had been losing weight.

© 1988 Sydney Morning Herald

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