Dia: for Oddo BHF, it's time to sell
(CercleFinance.com) - This Monday an analyst at Oddo BHF maintains his "reduce" recommendation on the stock of Dia group, with a target price of 30 cents (meaning downside potential of 59%).
Noting the share price's recent increases, the broker believes it is the right moment for investors to profit from the share's rise to sell.
The capital increase presented by the board is likely to succeed, given the opposition of Letter One, its largest shareholder with 29.9% of the capital. Remember that 2/3 of total votes are required to approve a capital increase at an EGM. Letter One's holding, which has invested 700 million euros (cost price of 3.73 euros per share) will be significantly diluted by the capital increase and is expected to present an alternative project: i.e. a bid of 0.67 euro/share, which will be followed by a capital increase of 500 million euros.
Finally, a new suitor, Naturinvest group, led by Bernard Bontoux, which has a holding of 2.94% of the group's capital, along with its allies (Gomez Pablo brothers: 0.3% stake), would like to make a counter-bid, Oddo BHF summarises.
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