Ebro shares boosted by reported takeover interest

27 November 2007

MADRID – The shares of Ebro Puleva rose sharply on Monday after a report that UK private equity firm Permira is looking at the Spanish food company’s books with a view to making a possible offer for it.

Ebro Pulva’s stock closed up 6.40 percent at EUR 14.30. Prior to Monday’s rally, Ebro’s share price had been down 30 percent for the year, partly reflecting sharply higher prices for raw materials such as wheat.

“It’s a company we like, and it is true we are studying its books,” Spanish daily El Economista quoted a Permira source as saying. The source said that the private equity firm had yet to decide whether to make a move for Ebro.

In a statement to the Spanish National Securities Commission, Ebro said it was unaware of any interest by Permira in making a possible takeover offer for the company.

Ebro has a market capitalisation of over EUR 2 billion. Over 60 percent of Ebro’s capital is freely traded. The rest is in the hands of the Hernández family, savings banks, local beer manufacturer Damm and the Spanish state-owned industrial holding company SEPI.

[Copyright EL PAÍS, SL./ Adrián Soto 2007]

Subject: Spanish news