Kardex Soars on Promise of Special Dividend: Zurich Mover

Kardex AG (KARN) rose the most in almost seven months, after the Swiss conveyor-belt maker said it has completed a unit sale and plans to pay a special dividend.

Shares in the company climbed as much as 11 percent, the biggest intraday increase since Jan. 12, and were up 6.9 percent at 39.50 francs at 11:48 a.m. in Zurich. More than 34,000 shares exchanged hands, nearly double the average daily volume of the past three months. The Swiss market was closed yesterday for a holiday.

Kardex said on July 31 after markets closed that it had completed the sale of its Stow storage unit to France’s Averys and would pay a special dividend, tax free to Swiss private persons, of 4 francs a share.

“The new focus and the related slimming down should make Kardex more likely to be traded as a takeover target,” Alexander Koller, an analyst at Zuercher Kantonalbank, said in a note to clients, raising the stock to outperform. “The more attractive margin profile raises the fair value and should give the share price an additional boost.”

To contact the reporter on this story: Catherine Bosley in Zurich at cbosley1@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net

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