Vestas Sinks as Lawsuit Used to Reap Gains: Copenhagen MoverChristian Wienberg
Vestas Wind Systems A/S fell to its lowest price in a week in Copenhagen trading as some investors cashed in on recent share gains amid news the turbine maker is facing a lawsuit.
Vestas fell as much as 6 percent to 110 kroner, the lowest since July 31. The stock also traded at that price at 9:13 a.m. local time with volume at 48 percent of the three-month daily average. The drop made the share today’s biggest loser in the Nasdaq OMX Copenhagen 20 index.
Vestas shares have more than tripled in value this year as an inflow of new orders has boosted investor confidence that profits will return at the Aarhus, Denmark-based producer. Vestas said yesterday that Deminor International may claim about 300 million kroner ($53 million) in a lawsuit on behalf of some investors who alleged a change in accounting policy hurt the share price. Vestas denies any wrong-doing.
“After a strong run in the share we foresee that some investors will use this noise around the company to take some profit in the share,” Patrik Setterberg, a Copenhagen-based analyst with Nordea Markets, said today in a note to clients. “We believe Vestas has good arguments in order to win this lawsuit and see the risk of losing this case as limited.”