Metrovacesa shares plunge after move to split

MADRID - Shares in Spanish property company Metrovacesa dived 17 percent on Wednesday after trading restarted following Monday’s announcement the business would be split in two.

By (Reuters)

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Published: Wed 21 Feb 2007, 5:30 PM

Last updated: Sat 4 Apr 2015, 9:55 PM

Spain’s biggest property company said on Monday it would split in a bid to end a year-long power struggle between its main shareholder groups.

The shares were 17.6 percent lower at 97.10 euros by 1028 GMT. They had been suspended since Monday.

Metrovacesa Chairman Joaquin Rivero and the Soler family have agreed with the Sanahuja family to reduce the company’s capital and turn it into separately run Spanish and French operations, the company said on Monday.

The Spanish unit would be run by the Sanahuja family while the French business would be controlled by Rivero and the Solers.

Should the split go ahead, it could end months of feuding on Metrovacesa’s board where the two rival groups failed to win control last year.

Under the deal, Metrovacesa would put its 68.76 percent holding in French subsidiary Gecina up for sale.

Metrovacesa minority shareholders would get the chance to exchange stock for stakes in the Spanish and French units.

In the swap, each Metrovacesa share would be worth 75.67 euros, while Gecina stock would be worth 129.36 euros.

The split, to be completed by the end of 2007, also would include payments of certain dividends.

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