Talanx AG, Germany’s third-biggest insurer, may in the coming days decide against selling shares to the public in July as market volatility continues following Greece’s election, said people with knowledge of the deliberations.
The Frankfurt initial public offering, which was expected to raise about 750 million euros ($950 million) in the first half, could be rescheduled for September, said the people, who declined to be identified as the plans are private. A final decision about the timing and valuation hasn’t been made, the people said.
Talanx may follow Evonik Industries AG, whose main shareholder RAG-Stiftung announced today that its IPO will be delayed due to market “insecurity.” Evonik was seeking to raise between 2 billion and 4 billion euros, a person with knowledge of the transaction said yesterday.
“We are carefully observing the markets and are very well prepared for a possible IPO,” said Thomas von Mallinckrodt, a spokesman for Talanx, based in Hanover, Germany.
The Vstoxx Index, a gauge of European stocks’ volatility, has climbed 60 percent from its March low this year. On June 4, the index rose to its peak of 36. IPOs typically proceed when the index trades below 25.
Other German IPOs, including HC Starck GmbH and Rheinmetall AG (RHM)’s car-part unit Kolbenschmidt Pierburg AG, may also be affected as Europe’s debt crisis deepens. While Greece’s pro- bailout parties won enough seats to control parliament, Spanish 10-year bond yields climbed to more than 7 percent for the first time since the creation of the euro as bad loans rose.
Avio SpA, the Italian aerospace supplier owned by U.K. buyout firm Cinven Ltd., may opt for a sale instead of an IPO after private equity companies CVC Capital Partners Ltd. and Clessidra SGR SpA submitted an offer valuing the company at more than 3 billion euros including debt, a person with knowledge of the matter said last week.
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