Andritz Rises as UBS Says Schuler May Be ‘Bargain’: Vienna Mover

Andritz AG (ANDR) rose for a second day after UBS AG said that its acquisition of German metal-forming machine-maker Schuler AG (SCUN) may be a “bargain.”

Shares climbed 2.3 percent to 41.6 euros at the 5:30 p.m. close of trading in Vienna. Andritz stock has advanced 30 percent this year, valuing the world’s second-biggest maker of hydro-power turbines at 4.3 billion euros ($5.3 billion).

“The Schuler acquisition will, in our view, add a high- quality machinery company to Andritz,” Sven Weier, an analyst at UBS in Frankfurt, wrote in a note to customers. “The purchase price could turn out to be a bargain if auto capital expenditure does not collapse as it did after Lehman, and if Andritz succeeds on obvious synergies such as cross-selling and execution.”

Schuler’s supervisory and management board yesterday said Andritz’s offer price of 20 euros a share was “financially adequate” and recommended shareholder accept the offer.

“We may sound like a broken record but Andritz remains our key pick,” Weier said. He rates Andritz at buy and raised its share price estimate to 49 euros from 45 euros.

To contact the reporter on this story: Zoe Schneeweiss in Vienna at zschneeweiss@bloomberg.net

To contact the editor responsible for this story: Jonathan Tirone at jtirone@bloomberg.net

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