Wednesday 11 April 2012

gulfnews : Investors brace for realty merger

Abu Dhabi's stock market has already priced in a one-for-one share valuation in a proposed merger between real estate developers Aldar and Sorouh, analysts said Tuesday.
The share price of each company has moved almost in tandem ever since the companies announced in March they had started talks on a possible merger.
Furthermore, Aldar and Sorouh have moved by the exact same percentage amount in the last five consecutive trading sessions on the Abu Dhabi Securities Exchange (ADX); a situation analysts say is a sign that a merger is being viewed as a formality at a one-for-one share ratio — meaning shareholders will get one share in any new entity for each share they hold in Aldar and Sorouh.

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