doValue slips on lack of updates on Gardant deal

doValue

15/05/2024 11:08

** Shares in Italy's biggest bad loan company doValue
 DOVA.MI  slip around 6%, with analysts pointing to lack of
updates on its potential acquisition of rival Gardant along with
its Q1 earnings
    ** doValue said in March it had entered exclusive talks with
Elliott Advisors and another fund to buy Gardant
    ** Brokers Equita and Akros both note the lack of updates on
the M&A plan, with the latter adding "results are in line with
FY24 budget but still negative" and "uncertainty persist on the
deal with Gardant and its financing"
    ** Equita also flags that the currently envisaged deal would
include a capital hike and a partial refinancing of doValue's
debt, as its negative net financial position at March-end slid
to 517 million euros, below the broker's estimates
    ** At 1008 GMT, shares are down 5.8%, underperforming
Italy's all-share index  .FTITLMS  which is up 0.5%
    ** Including Wednesday's fall, the stock has dropped by 39%
YTD.​
    
    

 (Reporting by Enrico Sciacovelli)
 ((Enrico.sciacovelli@thomsonreuters.com))