Monday November 17, 09:46 AM
Glance-STOCKS NEWS EUROPE-HeidelbergCement down on Merckle sale talk
STOCKS NEWS Reuters Results diary
Stocks on the move Real (Frankfurt: BJU.F - news) -time Equity News
9:05GMT 17Nov2008-HeidelbergCement (Xetra: 604700 - news) falls on market talk of Merckle sale
-----------------------------------------------------------------------
Shares in HeidelbergCement fall 9.4 percent, making it the top
decliner among German midcaps, as a newspaper report says that
majority stake holder, the Merckle family, could sell its stake to offset
losses made on Volkswagen (Xetra: 766400 - news) stock.
The Financial Times Deutschland newspaper reports that German billionaire
Adolf Merckle made a 'high three digit million euro' loss after going short on
shares in German carmaker Volkswagen.
Merckle is now in talks with a group of about 40 banks about a bridging
loan, the paper says. It says that the Merckle family could sell some of its
nearly 80 stake in HeidelbergCement or in another company which the family owns
stock.
'Fear that Merckle will have to reduce stake in HeidelbergCement or that
family currently doesn't have the liquid funds to support heavily debt-loaded
HeidelbergCement should burden share price,' said a Frankfurt-based trader.
Heino Ruland, market analyst at FrankfurtFinanz, also believes this
possible.
'We have no clue what kind of funds are needed to overcome the crisis, but
considering the number of banks involved, it is all but tiny and could force
Merckle to sell assets and the easiest way would be listed assets such as
HeidelbergCement. Hence pressure on the stock price is almost guaranteed,'
Ruland says.
For more double click on
|
|
|
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
