(CercleFinance.com) – Carrefour is up more than 5% in Paris, while Stifel has confirmed its purchase note on the title with a target price of 20 euros.
Yesterday, the title Carrefour gained 5% at the close, after Bloomberg had mentioned a new attempt of merger on the part of Auchan. In October, a first negotiation between the two entities did not bear fruit.
“We think Carrefour’s main shareholders and group management would likely support a decent-priced cash offer,” Stifel notes.
And investors are not insensitive to the situation: the title arrogates again 5% in Paris today.
As a reminder, just a year ago, the French authorities put a halt to negotiations with the Canadian Couche-Tard, believing that an agreement could undermine the country’s food security, especially in a context of health crisis.
In view of these arguments, it now seems unlikely that the French authorities are hostile to a rapprochement between these two national players in mass distribution – provided they are reassured on the social side.
At the time, negotiations with Couche-Tard had started at a price of 20 euros / share for a 100% cash offer. Stifel understands that negotiations with Auchan in October had failed because the agreement was not 100% in cash. The price mentioned was then 21.5 euros, reports the analyst.
With less than 100 days of the presidential election, this issue could potentially become part of the news of the campaign. It is also not impossible that other players will come forward in order to get closer to the French distribution giant.
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