The shares of PrimaCom AG, the German business that filed for insolvency in 2010, more than quadrupled in price in two days as investors confused the company with the similarly named PrimaCom Berlin GmbH.
PrimaCom shares rose from 23.9 cents on Aug 6 to 1.118 euros in Frankfurt trading today. PrimaCom AG handed over German cable operator PrimaCom Berlin GmbH to lenders in a debt-for-equity swap in January 2011.
Deutsche Telekom AG, Germany’s largest phone company, is among bidders for PrimaCom Berlin GmbH, according to people familiar with the matter, Bloomberg News reported Aug. 6.
“PrimaCom AG has nothing to do with PrimaCom Berlin GmbH anymore that may be bought by Deutsche Telekom,” said Heike Pauls, a Frankfurt-based analyst at Commerzbank AG. “The rise in the share price of PrimaCom AG seems to show that some in the financial markets have not fully realized this.”
The principal owners of PrimaCom Berlin GmbH are Alcentra Group Ltd., Avenue Capital Group, ING Groep NV and Tennenbaum Capital Partners LLC.
A spokesman for PrimaCom Berlin GmbH didn’t immediately respond to calls seeking comment.