New World Resources Gains Second Day on JSW Merger Speculation
New World Resources Plc (NWR), the biggest Czech coking-coal producer, rose for a second day after the Daily Telegraph reported late on Feb. 28 that Polish rival Jastrzebska Spolka Weglowa SA held talks to merge with NWR.
The stock rose 1.4 percent to 160.7 koruna by 11:08 a.m. in Prague, adding to a 1.3 percent advance yesterday.
JSW hired Credit Suisse Group AG for initial merger talks with BXR Group Ltd., a 64 percent owner of NWR, the U.K. newspaper said. BXR may not accept a cash valuation of less than 800 pence a share, compared with 547 pence at yesterday’s close in London, according to the newspaper. JSW yesterday denied the report.
“A takeover of NWR by the Polish company is very unlikely,” Josef Nemy, an analyst at Komercni Banka AS in Prague, wrote in a report to clients today. “We therefore believe that the news is neutral for NWR shares.”
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