Galeries Lafayette shares surge on buyer rumour

16th December 2004, Comments 0 comments

PARIS, Dec 16 (AFP) - The price of shares in French luxury and fashion department store Galeries Lafayette surged by 10.21 percent in initial trading on Thursday after traders said that brokers Lehman Brothers had bought stock heavily.

PARIS, Dec 16 (AFP) - The price of shares in French luxury and fashion department store Galeries Lafayette surged by 10.21 percent in initial trading on Thursday after traders said that brokers Lehman Brothers had bought stock heavily.

The shares rose by 10.21 percent to EUR 189.90. Traders said that the broker had acquired about 1.3 million shares on behalf of a client, paying about EUR 195 per share.

One trader said that Lehman Brothers had been able to buy only half the number of shares it was seeking.

A report in the Les Echos business newspaper said that 1.3 million shares represented about 10.0 percent of the company.

The share had already gained 5.45 percent on Wednesday on market rumours that the retailer might become the target for a takeover by an investment fund, dealers said.

But one analyst at a European brokerage, who declined to be named, had commented: "An offer can be made only on a friendly basis because Galeries Lafayette is a family group which, as far as is known, was not interested in selling."

© AFP

Subject: French News

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