Metro May IPO Russian Business

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Dec. 12 (Bloomberg) –- Bloomberg’s David Tweed reports on the drivers for Metro’s share price rally. He speaks to Anna Edwards and Mark Barton on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

Tweed in berlin.

Metro has quite a share price rally this year.

What has been the driver react ? at 62% but you have to look at it in the context of radius years because of a graph from 2012 -- 2010, the share price is still down 41% and that is really a story about what's been going on with metro because it had not been keeping up with the times until they put their new chief executive officer into place at the beginning of 2011. let me just give you an example.

It is a huge cash and carry company and they also have electronic retailing with the brands saturn and media.

Until 2011, they did not sell anything on the internet.

When amazon came in to germany, they absolutely cleaned up and left metro behind and they have put a strategy and place where they are now selling electronics on the internet and that's an important thing to be selling because at least you don't have to go try on a television set.

That explain some of the share price and performance they've seen this year.

Also, speculation that they may sell their department stores here in germany.

The real speculation is about what could potentially happen if they ipo off the russian cash and carry business.

What might the russian business be worth, david?

What would they do with the money they put it up for sale?

This is causing a lot of speculation around the metro share prices because the russian business according to commerce bank say it could be worth 9.6 billion euros.

Metro's entire market capitalization is just over 11 billion euros which means you could in fact get the russian business, nearly 10 billion euros and the rest coming in for free.

They are saying it is a valuation game.

It's also the fastest-growing business for metro.

It's a growing 20% per year.

They might take some of that money out to expand another fast-growing markets.

David tweed in berlin kicking

This text has been automatically generated. It may not be 100% accurate.


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