Magyar Vagon withdraws takeover bid for Talgo at CNMV, but intends to appeal bid’s legitimacy in Spanish and European courts

Renta 4 | Magyar Vagon has decided to withdraw its takeover bid for 100% of Talgo at the request of the National Securities Market Commission (CNMV) in view of the Spanish government’s refusal to authorise the operation.

Magyar reiterates its intention to appeal the legitimacy of its bid before the Spanish and European courts, and does not rule out the launch of a new takeover bid if it obtains the approval of the courts.

Assessment: The news was expected after the government’s refusal, so we do not expect any impact on the share price.

We reiterate our OVERWEIGHT recommendation with a target price of €5.0/share.