Lafarge/Holcim Significant Terms Change Unlikely, Jefferies Says
2015-03-11 07:40:04.669 GMT
By Cormac Mullen
(Bloomberg) -- Jefferies says doubts Lafarge, Holcim
shareholders will risk losing merger synergies worth ~16%-19%
combined stockmarket value and potentially cause double-digit
percentage stock declines, in note.
* Says terms of a merger normally depend on long term
potential rather than outlook over next few quarters;
Lafarge 2015 guidance doesn’t appear to be a compelling
argument for renegotiation
* Says main argument for renegotiation in its view would be
that oil prices could have moved to structurally lower
level, potentially depressing longer-term profitability of
Lafarge’s business in Middle East, Africa
* Questions confidence in longer term oil price estimates
given recent volatility in short-term estimates
* NOTE: March 9, Lafarge/Holcim to Do What It Takes to
Conclude Deal: Analysts
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Cormac Mullen in Dublin at +353-1-523-9526 or
cmullen9@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net
2015-03-11 07:40:04.669 GMT
By Cormac Mullen
(Bloomberg) -- Jefferies says doubts Lafarge, Holcim
shareholders will risk losing merger synergies worth ~16%-19%
combined stockmarket value and potentially cause double-digit
percentage stock declines, in note.
* Says terms of a merger normally depend on long term
potential rather than outlook over next few quarters;
Lafarge 2015 guidance doesn’t appear to be a compelling
argument for renegotiation
* Says main argument for renegotiation in its view would be
that oil prices could have moved to structurally lower
level, potentially depressing longer-term profitability of
Lafarge’s business in Middle East, Africa
* Questions confidence in longer term oil price estimates
given recent volatility in short-term estimates
* NOTE: March 9, Lafarge/Holcim to Do What It Takes to
Conclude Deal: Analysts
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Cormac Mullen in Dublin at +353-1-523-9526 or
cmullen9@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net