Electrolux among STOXX top movers after media report hints at potential bid from China

Investor AB

21/02/2023 10:45

(Adds analysts comments)
    ** Shares in Electrolux  ELUXb.ST  surge 4% in heavy volumes
with a trader pointing to an Italian media outlet hinting at a
possible acquisition offer from China's Midea  000333.SZ 
    ** Italy's Il Foglio on Monday said the speculation had
sparked an outrage among local unionists who demanded the
Swedish home appliance maker to quash speculations
    ** The trader said the speculation originated in a regional
Italian newspaper Friulisera
    ** Electrolux was not immediately available for comment
    ** Johan Eliason, analyst at Kepler Cheuvreux, also thinks
the shares are moving on the media speculation, but adds the
report is not backed by evidence
    ** "Midea has an ambition to generate more than 50% of their
revenues outside of China and in order to get there acquisitions
could be one path forward", the analyst says, adding at the same
time he hasn't seen anything "substantiating" in today's news 
        ** Eliason says he would not expect any deal at this
point although he doesn't rule out Electrolux' controlling
shareholder Investor AB  INVEb.ST  might one day be willing to
divest the business 
  
        ** Electrolux lacks "the same sort of technology edge,
or high profitability or strong market positions" that Investor
tends to prefer in its portfolio, he says
  
        ** But it's not a good time for sellers, Eliason points
out
  
        ** The shares have lost about 40% of its value since
March 2021 highs
  
        ** Today's surge make the stock one of the biggest
gainers on STOXX 600 index  .STOXX 
  
 (Reporting by Greta Rosen Fondahn, writing by Boleslaw Lasocki)
 ((boleslaw.lasocki@tr.com))