Bankinter | According to the statement published on Thursday: “In view of the Material Information published by SEPI on 18 March 2026, we at EM&E consider that the circumstances currently do not permit a potential transaction between Indra Group and Escribano Mechanical and Engineering SLU, and therefore EM&E is withdrawing from the transaction”.
Bankinter analysis team’s view: The impact on the share price was negative yesterday (down 12.3% at close against a 2.3% fall in the Spanish market), mainly due to:
(i) it highlights the internal disagreements within the board.
(ii) the transaction made strategic sense and the market had priced in its completion. Consequently,
(iii) it implies a (hard-to-quantify) deterioration in the company’s fundamentals in the medium term.
However, in the immediate short term, it presents a tactical buying opportunity as fears of a potential conflict of interest arising from this transaction are alleviated. In this context, we preliminarily set a target price in the €56–€60 range (up 12%–20%), pending the establishment of a more reliable recommendation in the coming days.
