Talgo reduces its rise in the stock market to 1.43% after the Government shows its opposition to the Hungarian takeover bid

Efe Madrid

Madrid

Updated Wednesday, March 6, 2024-17:04

The train manufacturer Talgo has considerably reduced its stock market gains throughout the morning and

rose 1.43% compared to 6% in the first hours

, after the Minister of Transport, Oscar Puente, said that the The Government will do "everything possible" so that the takeover of the

Hungarian consortium Ganz-MaVag does not take place

if Russian investors or the Executive are behind the operation.

At 4:00 p.m., Talgo shares rose 1.43% and stood at 4.26 euros per share.

So far this year, the value has lost 2.96%.

Early in the morning, Talgo shares rose more than 6% on the stock market due to the possibility that

the presentation of the

public acquisition offer (takeover bid) by the Hungarian consortium Ganz-MaVag Europe for the company at a price 5 euros per share.

The Hungarian consortium Ganz-MaVag Europe could have obtained the support of Talgo's creditor bank, a necessary step to present the takeover bid, and, according to some media,

it would have the verbal agreement of the bank

that has guarantees for the change of control.

Given what foreshadowed the imminence of the operation, according to the newspaper El Periódico de España, which organized a

forum on mobility this Wednesday in which Puente participated

, the minister said that the Government "will do everything possible" to avoid the takeover of Talgo by the Hungarian group due to the fear that the Russian Government is behind the operation.

Transport sources consulted by EFE confirm that there has been a statement by Puente about the misgivings generated by the operation, without the minister having made public statements on the matter.

Before Puente's statements, Bankinter analyst Aránzazu Cortina

indicated that if the agreement is confirmed with the

creditor bank, which has guarantees regarding the change of control, the possibility of the Hungarian consortium presenting the offer for Talgo would be cleared.

Bankinter is inclined to

sell the share and places

its target price at 4.2 euros.

The takeover bid is subject to the position adopted by the Spanish company's creditors, which include

entities such as Santander and BBVA,

since changes of control in a company may even imply the execution of the loans subscribed.

According to the communication that Ganz-MaVag sent to the CNMV at the beginning of February, the stock market supervisor did not allow it to condition the takeover bid on

obtaining the consent of the financing entities

for the change of control.

On February 28, Talgo presented its 2023 results, according to which the company earned 12.24 million euros, almost ten times more than the 1.44 million of the previous year, with a strong boost in the order book and greater presence in international markets.