Tuesday December 23, 01:27 PM
Glance-STOCKS NEWS EUROPE-Cintra off on merger terms woes
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Stocks on the move Real (Frankfurt: BJU.F - news) -time Equity News
13:110GMT 23Dec2008-Cintra (Madrid: CIN.MC - news) off on merger term woes
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Shares in Cintra fall 7 percent on concerns that a possible merger
with parent Ferrovial could be via a share swap which might be
unfavourable for the toll road firm.
'Expectations that a share exchange could be unfavourable for Cintra is
hitting its share price,' a local trader said.
Last Friday, Spanish construction-to-aiports company Ferrovial said it is
studying a possible tie-up with Cintra..
The announcement then sent Cintra shares soaring 10 percent.
But over Monday and Tuesday, Cintra's share price has run out of steam, as a
cash deal seems less likely, analysts said.
'People were hoping for a buyout, but now it looks like it could be a
share-based merger,' one sector analyst said.
Cintra shares have fallen around 35 percent this year so far, punished by
negative sentiment surrounding sluggish traffic flow during a global economic
slowdown.
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