Edenred up over 20% in its first meeting
July 2, 2010 – 8:10 pmThe title Edenred (ex-Accor Services) signed the largest increase in the CAC 40 and traded more than 20% above its reference price Friday on the Paris Bourse, investors buying attractive valuations and good prospects group.
At 10:55, the group action of prepaid services, resulting from the division of Accor's two entities, increases from 23.03% to 14.025 euros, or slightly above the range of 11-14 euros made by the president 'Accor Tuesday at its general assembly.
Euronext announced Thursday that the reference price Edenred technique for opening the market Friday was 11.40 euros.
"Edenred enjoys a windfall.The fundamentals of the business are strong and they fixed the price at the low end and below the gray market, "commented William Rascoussier, an analyst at Oddo Securities.
According to traders, securities Edenred treated each Thursday on the gray market at around 12 euros.
"This recognition led to an implicit capitalization of around 2.6 billion euros and up to a PE Edenred 17.7 2010 14.3 2011, broadly in line with Visa," says Matthias Desmarais, an analyst at Exane BNP Paribas.
"Fundamentally, we remain positive on its business model and its ability to achieve its goals," he adds.
The title also benefits from a technical aspect because of its presence in the CAC 40 but it will be removed on Monday.
"Index funds are obliged to integrate Edenred in their portfolios since the value is in the CAC 40," said a trader in Paris.
"The selling pressure on Monday when she returns will be withdrawn unless a surprise entry of a big player in the capital," he warns.
ACTION ACCOR retreating
In contrast, the title Accor sells 4.9% to 23.465 euros, the biggest drop in the CAC 40.
"Accor, for its part, although they would benefit in the short term a 'news flow' very favorable, probably more likely to suffer short-term implicit rather than his recovery and high risks to global growth, which are Traditionally the hospitality industry under pressure, "wrote Natixis in a research note.
"We were afraid of a 'flowback' on Accor shares and the 'flowback' is rather limited," color of his side Rascoussier William.
Accor also ready to cede control of the railway catering company Compagnie des Wagons-Lits (CWL) to Newrest Group International and could announce an agreement on this topic early next week, Les Echos reported Friday.
The newspaper also wrote that the proposed IPO of Groupe Lucien Barriere, "preferred option" of its withdrawal from the operator of casinos and luxury hotels, will be presented to analysts on July 7.
A spokesman for the group said that Accor was not "no comment" about it.
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