-Shares in German chemicals maker Covestro rose on Thursday after Reuters reported that ADNOC was preparing to make concessions in response to an EU subsidy investigation of its 14.7 billion euro ($17.2 billion) bid for Covestro. Shares in Covestro were up 5.5% at 0924 GMT, on track for their best day in over a year. […]
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Covestro shares climb as ADNOC plans EU concessions
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-Shares in German chemicals maker Covestro rose on Thursday after Reuters reported that ADNOC was preparing to make concessions in response to an EU subsidy investigation of its 14.7 billion euro ($17.2 billion) bid for Covestro.
Shares in Covestro were up 5.5% at 0924 GMT, on track for their best day in over a year.
The remedies would likely see ADNOC, the Abu Dhabi state oil giant that bid for the German company last year, convert a proposed 1.2 billion euro capital hike to a shareholder loan, people familiar with the matter had said.
“These are incrementally positive developments that support the stock, as they increase the likelihood of a near-term agreement between the parties and a successful closing of the acquisition,” Metzler analyst Thomas Schulte-Vorwick said.
Last week ADNOC was still slamming EU regulators for what it called disproportionate and invasive requests for information that it warned could jeopardise the deal.
Up to the previous session’s close, Covestro shares were down 3.1% in the year to date.
($1 = 0.8555 euros)
(Reporting by Bernadette Hogg and Marleen Kaesebier in Gdansk; Editing by Matt Scuffham)