Deutz plunged as much as 11 percent to 6.56 euros, the biggest intraday decline since August 8, 2011, and was trading down 9.1 percent at 12:44 p.m. in Frankfurt. Trading volume exceeded the three-month daily average by 124 percent. The stock has gained 89 percent this year, valuing the company at 810 million euros.
SAME Deutz-Fahr, the Treviglio, north Italy-based maker of agriculture machines and tractors, completed the sale of the stake at 6.88 euros a share, according to an e-mailed statement today. Deutz will remain an important supplier and strategic partner, SAME Deutz-Fahr said. The closely held Italian manufacturer acquired the German company’s agricultural machinery division in 1995.
“Maybe SAME wanted to focus on its core business of tractors and agriculture machines,” Holger Schmidt, a Frankfurt based analyst at Equinet AG said by phone today. “Their strategy over the last few years was to reduce their stake, and this is the completion.”
SAME Deutz-Fahr sold a stake of about 18 percent in Deutz to Swedish truckmaker Volvo AB (VOLVB) in September 2012.
SAME Deutz-Fahr chose a “rather favorable” time to sell as Deutz “seems fully priced” and has no further upside at the moment, Schmidt said. He downgraded his rating on the shares to hold from buy with a price estimate of 6.5 euros.
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