Bankruptcy Wiping Out Rival Boosts Aarsleff: Copenhagen Mover
Per Aarsleff A/S (PAALB), a Danish building contractor, rose the most in three months in Copenhagen trading after one of its biggest rivals filed for bankruptcy.
Aarsleff rose as much as 3.6 percent, the most since May 27. The stock advanced 2.4 percent to 635 kroner at 9:46 a.m. in the Danish capital with trading volume at 77 percent of the three-month daily average. The advance gave the Aabyhoej, Denmark-based company a market value of 1.44 billion kroner ($260 million).
E. Pihl & Soen A/S, with 2,400 employees, said yesterday it filed for bankruptcy after the board failed to reach an agreement with creditors that would have allowed the company to continue operations. Aarsleff, which employs about 3,600 people, said today it will take over Pihl’s tasks and hire some of its workers for the two contractors’ joint project to renovate Noerreport, Copenhagen’s busiest train station.
Pihl, which was founded in 1887, said it was brought down by a strategy of expanding too aggressively during Denmark’s property boom and after costs rose more than budgeted on some projects. Outside Denmark, the company has building contracts in Lebanon, Norway, Sri Lanka and Sweden, according to its website.
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