Worldpay: Berenberg cuts target price after Vantiv bid.
(CercleFinance.com) - Berenberg has reduced its target price for Worldpay to the bid offer of 385 pence, while maintaining a "hold" rating on the shares of the British payment specialist.
In a research note sent to its clients, the German broker says the offer that was submitted by US rival Vantiv last Wednesday is "disappointing."
In particular, the broker believes that Vantiv's offer does fully value the potential cost synergies that could mainly result from integrating Worldpay's US operation.
"Considering the strategic value of Worldpay's global e-commerce operations, we would have expected Vantiv to have to share more of these synergies with Worldpay shareholders," Berenberg says.
Still, the broker thinks that Vantiv's bid is the most likely to win and does not believe that there will be a counter-bid.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In a research note sent to its clients, the German broker says the offer that was submitted by US rival Vantiv last Wednesday is "disappointing."
In particular, the broker believes that Vantiv's offer does fully value the potential cost synergies that could mainly result from integrating Worldpay's US operation.
"Considering the strategic value of Worldpay's global e-commerce operations, we would have expected Vantiv to have to share more of these synergies with Worldpay shareholders," Berenberg says.
Still, the broker thinks that Vantiv's bid is the most likely to win and does not believe that there will be a counter-bid.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.