(BFM Bourse) – The shares of pension managers Korian and Orpea tumbled together on Friday on the Paris Stock Exchange after the announcement of an ongoing investigation by the magazine “Cash Investigation” into private nursing homes.
The lull will have been short-lived for Orpea and Korian, who resumed their fall with a vengeance this Friday. In question this time: a tweet from Elise Lucet, presenter of the program “Cash Investigation on France 2, which promises “new revelations” at the end of an investigation that her team has been carrying out “for more than a year on private nursing homes”. The broadcast of an investigation into the fast food group McDonalds scheduled for mid-February has been rescheduled to focus on the scandal in the operators of retirement homes, according to this tweet.
Around 3:45 p.m., the Orpea title, which has fallen by around 60% since its challenge in a book denouncing serious failures in its establishments, fell by 12.5% to 33.70 euros in a market down by almost 1%. Worse still, the Korian share plunges on its side from 16.7% to 17.59 euros. Another player in the sector, LNA Santé, fell by 9.4%.
“Orpea’s announcements were clearly not enough to restore hope to investors, and the announcement of a Cash Investigation on nursing homes completes convincing the markets”, comments for AFP, AlphaValue, independent analysis firm . “This issue is known for not being out of line, it is normal for the market to react violently. There will be a before and after this Orpea affair, both among all issuers but also among so-called ESG investors” , continue the experts of AlphaValue.
In “Les Fossoyeurs”, journalist Victor Castanet describes the rationing of medical supplies and food in establishments with very high prices, chronic mistreatment of residents, financial targets imposed on departments closely controlled by headquarters. Accusations that the group refutes en bloc and which have made the political class and public opinion react.
“The current controversy will, in our opinion, have a much more significant impact because the issue is becoming political. It seems very likely to us that the regulatory framework for nursing homes will evolve, regardless of the conclusions of the various ongoing or future investigations”, according to a note from Oddo BHF published on Friday which reports an “unprecedented case of stress” for the sector.
(with AFP)
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