Renta 4 | According to press reports, Pesa has informed the National Securities Market Commission (CNMV) that during this week it will launch a takeover bid for 100% of Talgo’s shareholding.
The offer will be subject to the fulfilment of certain conditions that have not yet been disclosed and opens the possibility for the consortium led by Sidenor to join the operation.
Assessment: News that we value positively since it seems that the offer would include 100% of the shareholding and that it would probably be at a price very similar to the €5.0/share offered by Magyar. However, we see it as complicated for the government to approve this operation unless the Spanish consortium led by Sidenor, the Basque government and the Vital and Kutxa foundations finally become part of it. We value positively the fact that this option would solve the capacity problems that Talgo would have in the event of winning a large part of the contracts in its pipeline.
Positive impact, although limited until we know the price of the offer and the first comments by the Spanish executive on this possibility.
We reiterate our recommendation of OVERWEIGHT with a target price of 4.8 eur/share.
