Market reacts to Heidelberg-Gallus situation Jo Francis Monday, February 1, 2021
Heidelberg’s share price fell by more than 14% as the stock market reacted to the news that its deal to sell Gallus had fallen through.
“Gallus will remain with Heidelberg and nothing will change for Gallus customers.
In a shock announcement on Friday evening (29 January), after the close of trading on Germany’s DAX exchange, Heidelberg said that the €120m (£106m) sale of the label press manufacturer to Benpac Holding did not complete.
Today (1 February) Heidelberg’s shares were down 14.6% at €1.11 in early trading. The price then recovered slightly to €1.15.
Towards the end of last year Heidelberg’s share price had risen sharply to a new 52-week high of €1.39 (low: €0.47).
Benpac: why the Gallus deal failed Jo Francis Monday, February 1, 2021
Benpac Holding has blamed “resistance” from the Gallus operations and the market in general, conflicts over future co-operation, and negative media reports for its decision not to complete its takeover of Gallus as planned.
Benpac: successful implementation had to be called into question
In a statement, Benpac chief executive Marco Corvi said: “The reasons for this decision are essentially the resistance that Benpac has faced in recent months. The reactions from the market and from the Gallus companies themselves were so strong that successful implementation had to be called into question. The decision was also influenced by negative media reports that damaged the reputation of Benpac Holding AG and Marco Corvi personally.”