NEW YORK - With the broad S&P 500 Index gliding once again into uncharted territory and posting four straight weeks of gains, the talk of Wall Street's rally inevitably hitting a ceiling is starting to get old.
LONDON - From ketchup to hot drinks, family-run investment firms are shaking up the consumer deals market, squeezing out private equity players and forcing them to change strategy.
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.
Vestas shares roiled on report of Chinese suitor
COPENHAGEN (Reuters) - Shares in Danish wind turbine maker Vestas (VWS.CO) fell on Monday after rallying on a news report that China's Ming Yang Wind Power Group Ltd (MY.N) was looking to buy it.
In a roller-coaster ride on Monday, shares in the world's biggest wind turbine maker initially dropped sharply on a Danish newspaper report that Vestas might need fresh capital from shareholders.
The stock then climbed as much as 6.9 percent to 30.52 crowns following the report by a Chinese online news publication of Ming Yang's interest before ending down 2.4 percent after a Ming Yang spokeswoman was reported to have denied any acquisition plans.
Shares in Vestas, repeatedly reported to be a possible takeover target, lost two thirds of their value last year and have shed a further 53 percent since end-2011, reducing the company's market value to just 5.67 billion Danish crowns ($937.50 million).
Formerly a darling of investors, the wind energy industry has been hit by weak demand and overcapacity in the global economic slump as government budget cutting has reduced support for renewable energy and financing for projects has dried up.
Rising costs and fierce competition, including from Asia rivals, have compounded the problems.
Citing a "source close to the situation", China's Caixin Online said on Monday that Guangdong-based Ming Yang Wind Power Group was seeking to acquire Vestas in a deal worth between 1.5 billion euros and 2 billion euros ($1.85 billion-$2.46 billion).
Caixin also said that an official from the industry regulator confirmed Ming Yang's intentions but later media reports cited a Ming Yang spokeswoman as saying the Chinese company had no plan to acquire Vestas.
Vestas' stock was lifted in March by a report in a French newspaper that French engineering group Alstom (ALSO.PA) was looking at it, rival wind turbine maker Gamesa (GAM.MC) of Spain and Germany's REpower as potential takeover targets.
In April, Vestas shares jumped 15 percent after a newspaper report that China's biggest wind turbine maker, Sinovel Wind Group (601558.SS), and No. 2, Xinjiang Goldwind Science & Technology Co (002202.SZ) (2208.HK), had discussed with bankers the possibility of bidding for Vestas.
Last week the stock was dented by an unconfirmed report that Vestas had entered debt restructuring talks with its banks and that it was considering putting itself up for sale.
"It is more or less just up to whether you believe in the rumor or not," Danske Bank head of trading Mads Zink said after the bumpy ride for Vestas shares on Monday.
Zink noted that Vestas is widely held by retail investors, so it tends to be volatile as a day-trading stock. ($1 = 0.8126 euros) ($1 = 6.0480 Danish crowns)
(Reporting by John Acher and Mette Fraende; Editing by David Cowell)
- Tweet this
- Share this
- Digg this