Dutch Builder Ballast Falls Most Since October on Loss ForecastFred Pals
Ballast Nedam NV, the builder of Amsterdam’s ArenA soccer stadium, fell the most in more than three months after predicting a 2013 operating loss of as much as 30 million euros ($40.1 million), mainly from reorganization expenses and impairment charges.
The stock fell as much as 9.1 percent, the biggest decline since Oct. 25, and dropped 6.01 percent to 9.62 euros at 10:42 a.m. in Amsterdam. Volume was almost triple the three-month daily average.
The company plans to sell shares worth 30 million euros to existing investors, place a loan of 80 million euros maturing in 2017 and cut about 150 jobs in the building unit, according to a statement today.
“The persistently poor market conditions and disappointing results in 2013, and proceeds from disposals that materialized later than expected, necessitate further accelerated intervention,” the Nieuwegein, Netherlands-based company said.
“The issue of roughly 30 percent of market capitalization will lead to significant dilution, but the company will be in much better shape after,” Edwin de Jong, an Amsterdam-based analyst at SNS Securities, said in a note to investors. De Jong has a “reduce” rating on the stock.