Some Russian stocks are either under-performing or were overvalued at their initial public offerings. There have been some notable successes in the market recently like Novatek a Russian gas company which raised $966 million at its IPO and has seen its share price rise 150 per cent since then. Unfortunately for the tyre business, Amtel-Vredestein has not faired so well.
(Akron/Tire Review) AFX News reports that Italian banks Mediobanca and Banca Intesa will probably be tapped to lead the IPO of Pirelli SpA’s tyre group. Goldman Sachs may also be an advisor on the potential deal. No decision on bankers has been made. Pirelli’s board of directors said it would consider an IPO for it tyre unit, but would retain controlling interest.
(Akron/Tire Review) Italian banks Mediobanca and Banca Intesa will likely be chosen to lead the initial public offering (IPO) of Pirelli’s tyre unit, according to a Reuters report, though an official decision has not yet been made. Goldman Sachs will advise on the deal, the report stated. Sources also suggested that the Pirelli tyre unit could be listed by this summer.
(Akron/Tire Review) The board of directors of Pirelli SpA has said it will consider launching an IPO for its global tyre division, though the Italian tyre and telecommunications company said it would hold a majority share in the spin-off.
(Akron/Tire Review) Multiple news reports say that Pirelli SpA is looking to spin off its tyre unit as a separate entity, and launch an initial public offering of stock. Forbes.com reported today that Goldman Sachs will likely be appointed to handle the IPO. News speculation in Milan says the Italian tire and telecommunications giant planned to separate its global tyre operations into a stand-alone company. Pirelli has not commented on those reports, though.
Russian-Dutch tyre maker Amtel-Vredestein has admitted to using tax optimisation schemes up to 2002, according to Russian newspaper Vedomosti. The report refers to a period before Amtel bought Vredestein and comes after Amtel-Vredestein set an indicative range of $13 to $16 per Global Depositary Receipt in its London IPO, which is expected to raise around $300 million and value the company at $1.2 billion.
The Accuride Corporation has announced that its stock has been added to the Russell 2000 Index. The annual reconstitution of Russell’s 21 US equity indexes captures the 3,000 largest US stocks, ranking them by market capitalization to create the broad market Russell 3000 Index. This year marks the 21st anniversary of Russell’s US indexes.
Kumho Tire made its official debut on both the South Korean and London stock exchanges on Wednesday. The South Korean tyre maker launched simultaneous initial public offerings of its stock earlier this month, and began active trading yesterday.
On its first trading day on the London exchange, Kumho’s share price closed at £7.92, up six per cent from its IPO pricing.
The merger of ContiTech and Phoenix moved a step closer today when the boards of the companies made a profit and loss absorption agreement. In line with the valuation agreed by both parties, Continental will hold 95.78 per cent of voting stock of ContiTech once the merger has taken effect. Continental currently holds 75.73 per cent of Phoenix’s voting stock.
During the merger ContiTech, currently known as ContiTech Holding GmbH, will change its legal status. In the future the company will be known as ContiTech AG. Continental says it is unlikely to make an initial public offering immediately after the merger is completed, but the company’s management has hinted that an IPO is possible.
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