Italy's OVS up, possible deal to buy 100% of retailer Coin

OVS SpA

28/06/2022 08:50

** Shares in OVS  OVS.MI  rise as much as 4.8% after the
Italian clothing retailer has signed a letter of intent to buy
100% of Italian retail chain Coin and announced an additional 10
million euro buyback.
    ** In a "very preliminary comment," Intesa Sanpolo's
analysts say they don't see the industrial rationale of a rather
big deal such as the acquisition of a Coin.
    ** However, cost synergies, notably on selling, general and
administrative expenses, "could be significant and help contain
the dilutive impact on OVS' estimates in the short term," they
add 
    ** "It is premature to incorporate impacts from the possible
deal," broker Equita writes in a note
    ** Including today's rise the stock has dropped by 35.59%
YTD
    ** By around 730 GMT OVS is up 2.7% 

 (Reporting by Federica Urso)
 ((Federica.urso@tr.com))