World News 07/08/2014

CVC-operation Deoleo. Who is trying to blow up the financial operation?

CVC Partners destined to take control of the Spanish Deoleo but someone is still trying to row against the deal. Is just speculation?

The American agency Standard & Poor's confirmed its rating B to Deoleo, with a stable outlook in the coming months. Especially regarding the refinancing of 600 million euro decided with the acquisition of control of the company by the British fund CVC Partners.

Standard & Poor rewards in short, the English financial move, trying to support an agreement which, however, still see the open hostility of a frond of small shareholders. These shareholders, 705 in all, have signed the 3,707% of the shares and hope to make their voices heard against the takeover by CVC partners. A face that could even grow if the current prices of Deoleo, about 0.5 euro per share, were kept stable in the coming weeks.

The bid by CVC Partners, in fact, provides for the purchase of 0.38 euro per share, then a threshold well below the current share price. A fact that may cause some concern even when the authority of the Iberian Security Exchange will have to give the go-ahead to the operation on August 22.

According to information acquired by Teatro Naturale behind the increase in the stock value of Deoleo, there would be more and more significant purchases by the Fidelity Fund Sicav that, in a few weeks, rose to 3,325% of Deoleo, for an outlay of more than 14 million euro.

The operation launched by Fidelity Funds Sicav could be purely speculative, or if it is a round-up of action in favor of a third party, such as might be the SEPI (Spanish sovereign wealth fund) that, apparently, at this time want to stay away from the sector.

The first hypothesis, at the time, it appears that the most likely. It 's possible that, in the light of the rise in stock prices, CVC Partners is forced to raise the stakes, or retouch the value of 0.38 euro per share promised in June. A step that would please the group of small shareholders, making them less intransigent on the sale of their shares. At the same time it could generate good profits for the Fidelity Fund Sicav on a short-term speculative investment.

The obstacle placed in the path of CVC Partners seems so far from insurmountable considering that the price range is considered fair between 0.40 and 0.55 euro per share.

The world olive-olive oil remains at the window, trying to figure out if and when the conclusion of this operation will bring a little 'stability, even on the price front, whereas, in the Mediterranean basin, the next oil campaign is rather poor.

di T N