Bureau Veritas falls, SGS up after no-go to potential $30 bln merger

Bureau Veritas SA

27/01/2025 08:51

** Shares in Bureau Veritas  BVI.PA  fall as much as 3.8% while SGS  SGSN.S 
jump as much as 7% after both firms said talks over their potential $30 billion
merger have ended
    ** "The market was speculating that SGS would pay a kind of premium on BVI,
reflected in the parity of the potential merger. That won't happen eventually,
so BVI is down and SGS is up", an analyst, who asked not to be named, says
    ** Vontobel favours SGS in a "standalone scenario" given the value
generation in a merger scenario would be hard to achieve, and upgrades the stock
to "buy" from "hold" 
    ** At 0845 GMT the shares in French company are down 2.8%, while SGS is up
4.3%

 (Reporting by Mateusz Rabiega and Paolo Laudani)
 ((mateusz.rabiega@thomsonreuters.com;))