Allfunds falls, Euronext rises on dropped merger talks

Allfunds

01/03/2023 08:10

** Allfunds Group  ALLFG.AS  shares drop almost 16% after
Euronext  ENX.PA  withdrew its 5.5 billion euro ($5.82 billion)
indicative offer to acquire the fund distribution firm
    ** The shares in the European stock exchange operator rise
almost 6%
    ** Euronext did not elaborate on the withdrawal's reasons
but a source close to the matter cited "inadequacy in terms of
lack of synergies, drop in Euronext's shares since the offer and
the uncertainty of the proposed offer in its timing and
financing"
    ** Allfunds says its board considered the terms of the
proposal "inadequate"
    ** Credit Suisse expects at least partial reversal of
Euronext's recent negative share price reaction to the deal, but
questions on "what next" remain
    ** Euronext shares have lost about 10.25% since the deal was
reported on Feb 22
    ** "We'd clearly expect Allfunds to retrace some of its gain
in the last week," Citigroup says, finding it "interesting ...
if this shakes any other parties out of the wood work"
    ** "For Euronext ... capacity to pay notwithstanding, this
would have been an interesting strategic move for them" - Citi
    ** Jefferies adds Deutsche Boerse  DB1Gn.DE  "emerges with
reinforced credibility" from the story "by virtue of doing
nothing"
    ** "It could yet come back for (Allfunds), but there is no
obvious time imperative" - Jefferies
    ** Shares in Deutsche Boerse edge up 1%

 (Reporting by Piotr Lipinski)
 ((piotr.lipinski@tr.com))