The Zodiac as flies on a possible offer for Safran
Title Zodiac Aerospace signed Monday morning the largest increase in the SBF 120 and the Paris Stock Exchange following news reports that Safran would consider launching a bid for the aerospace supplier.
In its Monday edition, the Tribune reported that the aerospace group could offer shareholders a premium of Zodiac between 30% and 40% over the closing price as of Friday, and it planning to make this purchase by exchange titles to convince families shareholders.
At 9:52, as the Zodiac, whose rating was slightly delayed the opening, climbed 14.4% to 49.605 euros, bringing its market capitalization of 2.8 billion euros in a trading volume accounting for almost two times the usual volume.The title meanwhile retreated Safran 1.22% to 19.10 euros.
"A 40% premium would Zodiac 60 euros per share, valuing it at around 14 times EV / EBITA 2011, while the recent transactions in the sector reach a ratio of eight times," commented one Paris trader.
"The prices were attractive, but we doubt that an offer is accepted by the shareholders of the Zodiac and Safran will have to bring cash. Remember that Saffron has the means to realize such a transaction, the group had virtually no debt," says he.
Zodiac leaders have repeatedly conveyed their opposition to a merger with Safran, assuring that the group intended to remain independent and make acquisitions itself to guarantee its development.