Prysmian shares go up after Goldman Sachs sells stake in the company
Monday, Mar 08, 2010Goldman Sachs Group Inc sold its remaining 16.8 percent stake in Italian cable maker Prysmian SpA on Friday, removing an overhang of stock which had depressed its share price.
Prysmian shares rose 3.5 percent to more than the price which dealers said the U.S. investment bank had sold its stake.
Goldman sold the stake to investors at 12.75 euros a share, dealers said, in a process which brokers said had offered shares in a price range of 12.50 to 13 euros.
Orders covered the offering two to three times. The 30.4 million shares were sold to institutions, except for 1.5 million to Prysmian Chief Executive Valerio Battista, market sources said.
Goldman had acquired the Prysmian cable activities of Pirelli & C PCEI.MI in 2005 in a private equity deal and has sold down its stake. In November it placed a 14.3 percent stake with institutions.
"Although the end of the overhang is a clear positive for the stock, which may therefore rebound in the short term, we still don't see a recovery in the company's financials," a Milan brokerage said in a note.
Earlier this week Prysmian announced a fall in core profits, in line with expectations, but expressed caution on the chances of a pick-up this year.
Shares in Prysmian were up 3.6 percent at 13.67 euros by 1524 GMT, outperforming the Italian FTSEMIB blue chip index.