Beiersdorf shares lift on P&G bid rumours
Beiersdorf shares have seen more volatility as P&G bid rumours continue
Market speculation that major Beiersdorf shareholder Maxingvest, owned by the Herz family, was considering selling half its 50.5% stake to Procter & Gamble (P&G) has helped fuel more share price zigging and zagging. The Nivea maker’s shares hit more than €72 recently.
Almost simultaneously, research analysts Sanford Bernstein stuck an Underperform sticker on the stock while analysts from AlphaValue issued a Sell rating on Beiersdorf. “Beiersdorf,” said Andrew Wood from Sanford Bernstein, “suffered from weak operating performance for three years from 2009-2011 driven by a combination of poor strategic direction, a weak economic environment, intense competition from its larger, more global peers, and by some mismanagement. The new CEO seems more impressive, focused and demanding than his predecessor and his Blue Agenda seems to make sense - even if it is not exactly original.”
Despite consistently stating it has been a long-term, loyal shareholder and despite owning a stake in Beiersdorf for more than 30 years, the controlling Herz family might eventually get tired of Beiersdorf’s stock performance says Wood, “or eventually decide that it prefers to invest the funds elsewhere.”
