Schibsted ASA fell the most in more than three weeks in Oslo trading after Danske Bank A/S cut its rating on the stock as Norway’s biggest media group’s Bomnegocio unit in Brazil struggles to gain market share.
Shares in the Oslo-based company fell as much as 2.5 percent, the most since July 17, and declined 2 percent at 306.9 kroner as of 12:48 p.m. in the Norwegian capital, making it the biggest decliner on the Bloomberg Europe Media index. More than 81,000 shares traded so far today, about 44 percent of the three-month average daily volume.
“There’s still a standoff between OLX and Bomnegocio,’ analysts at Danske Bank said in note. Growth in daily ads for the Brazil unit “show a surprisingly similar growth pace” as OLX Inc., said the analysts.
They downgraded the stock to hold from buy.
Schibsted, which is expanding its online business as readers increasingly forgo traditional print media, is investing to boost growth. It plans to spend 500 million kroner ($85 million) to increase revenue as it seeks to replicate the success of its Finn.no, Blocket.se and Leboncoin.fr websites in nations including Malaysia and Brazil.
OLX offers on-line classified websites in more than 105 countries and 40 languages, according to its website.