Seloger.Com Shares Rise Most Ever as Shareholder Questions Springer Offer
SeLoger rose as much as 32 percent to 39.49 euros in Paris intraday trading. The shares were up 27 percent as of 10:25 a.m., valuing the company at 632 million euros.
Axel Springer, based in Berlin and Europe’s largest newspaper publisher, said on Sept. 10 that its offer for the 14.6 million outstanding shares is priced at 34 euros a share. Groupe Arnault, the owner of a 9 percent stake in SeLoger, rejected the offer last week, saying it “undervalues the company” in terms of potential growth and profitability.
The website plans to appoint an advisory bank to assess the financial conditions of Axel Springer’s offer, SeLoger said in a statement yesterday. Its board will meet tomorrow to discuss the bid further, the company said. Axel Springer’s bid for SeLoger values the French company at about 25 times 2010 earnings, according to analyst estimates compiled by Bloomberg.
Axel Springer’s bid has affected other property sites outside of France. Rightmove Plc, the owner of the largest U.K. residential property website, surged to a record in London trading on Sept. 10.