The head of one of New Zealand's largest fund managers believes shares in Fisher & Paykel Appliances could be worth $3.30 each overall to Haier.
The Chinese whiteware firm, which owns a cornerstone 20% stake in the company, has indicated it will put in a take-over bid of $1.20 per share.
The bid has been subject to scrutiny as investors question whether to sell their stake in one of New Zealand's iconic brands and major global players, with huge research and development potential.
Haier has locked in Fisher & Paykel Appliance's second major shareholder, the Australian investment firm Allan Gray, with 17% shareholding at the $1.20 per share price.
But Tower Investment chief executive Sam Stubbs says he is not going to let the company's 3.7% stake go for a song - which he believes Haier's offer price is.
Based on figures from Fisher & Paykel Appliance's management and its five-year strategic plan, Tower has come up with a range of what Haier should be offering starting at $1.25 and peaking at $1.60.
Mr Stubbs says Tower Investments has looked at what value Fisher & Paykel Appliance's patented technology and brand could bring to Haier.
He believes the extra value to Haier of owning all of Fisher & Paykel is $1.25 billion, which takes the share value up to about $3.30.
Mr Stubbs says there is no way Haier will bid, that because the company does not want to give away all of the added value it would get.
"But it does put into perspective what the company may be worth if they owned it in its entirety to a bidder, versus what the market currently thinks Fisher & Paykel is worth if nothing was to change - it's a significant gap".
Mr Stubbs says some of that added value should be reflected in the bid price that Haier will make for Fisher & Paykel.
