Nov. 12 (Bloomberg) -- Kapsch TrafficCom AG posted the third-biggest decline in the Austrian ATX Prime Index today after the maker of road toll systems said it will sell its stake in a Russian joint venture.
The shares dropped as much as 2.6 percent to 42.28 euros, the lowest intraday price in two weeks. The stock was down 2.5 percent at 11:48 a.m. in Vienna, taking the total decline this year to 26 percent.
Kapsch is selling its 33 percent stake in United Toll Systems to joint-venture partner OAO Mostotrest for 6 million euros ($7.6 million), the Vienna-based company said in a statement today. Kapsch plans to focus on implementing and operating toll systems, rather than operating roads, it said.
“The foundation of the joint venture was to utilize potential synergies, that is to have a door opener to future large-scale orders,” said Daniel Damaska, an analyst at Raiffeisen Centrobank who has a hold recommendation on Kapsch, said in an e-mailed note. “It has to be assumed that Kapsch TrafficCom does not see these synergies anymore, which means a return to the beginning in the Russian market.”
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