Believe slumps after Warner Music drops plans to bid for co

Believe SA

08/04/2024 09:00

** Shares in Believe  BLV.PA  fall around 10% after Warner
Music Group  WMG.O  drops plans to acquire the French digital
music company
    ** Warner Music on Saturday said it will not submit a bid
for Believe; it had earlier planned to offer at least 17 euros
per share, valuing Believe at 1.65 billion euros ($1.79 billion)
    ** In February, Believe received a 15 euros per share offer
from a consortium made up of some of its largest shareholders
    ** Bernstein cuts rating on Believe to "market-perform" from
"outperform", saying it doubts this will make the consortium
resubmit or raise the initial offer
    ** "Considering the lack of an alternative bidder, we think
it unlikely that any of these scenarios could lead to an offer,"
the brokerage says
    ** The stock is on track for its worst day since January
2022 if losses hold
    ($1 = 0.9229 euros)

 (Reporting by Lina Golovnya)
 ((Lina.Golovnya@thomsonreuters.com;))