Vestas Wind Systems A/S, which became the subject of takeover speculation after its market value sank, fell from a nine-year low in Copenhagen trading after UBS AG said potential acquirers may not pay more than the company’s market price.
Vestas fell as much as 1.9 percent to 29.03, the lowest since March 2003. The stock declined 0.23 krone, or 0.8 percent, to 29.37 kroner at 11:15 a.m. in the Danish capital. Vestas’ market capitalization has dropped 96 percent since an August 2008 peak.
Chinese competitors have considered a bid for Vestas, the world’s largest wind turbine maker, Jyllands-Posten said in April. The newspaper didn’t identify its sources and Vestas declined to comment at the time. Patrick Hummel, an analyst at UBS, said today a possible bid may follow efforts by the Aarhus, Denmark-based company to strengthen its capital through share sales, diluting any future premium.
“Turn-around is far away,” Hummel said, cutting his price estimate to 30 kroner a share from 60 kroner. He has a neutral recommendation on the stock. “We see Vestas more than ever in a very challenging situation, both in terms of earnings power and balance sheet quality.”
Vestas reported on May 2 a first-quarter net loss of 162 million euros ($205 million), almost double its deficit a year earlier and close to triple the estimated low in a Bloomberg survey of eight analysts.