AMAG Shares Decline After Offer Below Market Price: Vienna Mover
AMAG Austria Metall AG (AMAG), an Austrian aluminum-products maker, fell the most in more than seven months after a mandatory takeover offer by two of the company’s biggest shareholders was less than its current market price.
The shares dropped as much as 7.5 percent to 22.75 euros, the biggest intraday drop since May 24. The stock was down 5 percent at 23.36 euros as of 12:09 p.m. in Vienna, giving the company a market value of 823 million euros ($1.08 billion).
B&C Industrieholding GmbH, an Austrian non-profit foundation’s investment vehicle, said yesterday it plans to offer AMAG investors 20.81 euros a share plus their 2012 dividend. The compulsory offer was triggered after B&C and Oberbank AG (OBS) announced that they’d combine holdings to support the company. They’ll own 35 percent of AMAG after merging their respective 29.99 percent and 5.01 percent stakes.
“The new investment vehicle does not intend to acquire all AMAG shares and plans no squeeze out,” Christian Obst, an analyst at Baader Bank who advises investors to buy AMAG shares, wrote in a research note. “We do believe that AMAG will remain a stock listed company.”
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