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STOCKS NEWS EUROPE-Allergy Therapeutics falls on placing

Fri Jun 12, 2009 8:00am EDT

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Shares in Allergy Therapeutics (AGY.L) tumble 8.7 percent to 15.75 pence after the hayfever vaccine specialist announces that it is raising up to 22.4 million pounds by placing about 163.5 million shares at 12 pence per share.

While the price is at a discount to Thursday's closing of price of 17.25 pence, the company said it represents a 28 percent premium to the average share price for the 90 days ending on the day before the date of first talks with Azure Ventures, which has taken up half of the new shares.

"Whenever a fundraising is done the share price tends to move towards the price it was done at, I'm not surprised that it is down," said an analyst.

The analyst added that it remains to be seen whether Azure, owned by the Weinstein family of Chile, whose interests include pharmaceutical companies across South America, can transfer its experience to Allergy's markets.

To see Allergy's statement please click on [ID:nRnsL7969T]

Reuters messaging rm://ben.deighton.thomsonreuters.com@reuters.net


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