De La Rue Jumps Most in 8 Years After FT Reports ‘Fair Value’
De La Rue Plc rose the most in eight years in London trading after the Financial Times cited a Bank of America Merrill Lynch report giving it a “fair value” of as much as 830 pence a share.
De La Rue, the world’s biggest printer of banknotes, climbed as much as 13 percent to 654 pence, extending a gain yesterday of 4.6 percent.
In September, De La Rue said some employees had deliberately falsified certain paper specification test certificates for certain customers. The company stopped shipments of affected banknote paper as soon as it was aware of the irregularities. De La Rue said Nov. 23 one major customer who was affected has yet to resume shipments.
Merrill Lynch gave the company a fair value of 620 pence, based on “bear-case figures,” the FT said, with a fair value of 830 pence if it managed to retain the deal with its biggest customer.
The shares were trading at 645.5 pence at 12:44 p.m. in London, giving the company a market value of 630.3 million pounds ($983 million). The stock has dropped 35 percent this year.
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