Allfunds tumbles as Euronext withdraws €5.5bn offer
Investment platform Allfunds tanked on Wednesday after Euronext withdrew a €5.5bn takeover offer for the company.
On 22 February, Euronext put out a statement in response to press speculation in which it confirmed that it had made an offer to Allfunds and was in talks with the company’s largest shareholders.
In a brief statement late on Tuesday, Euronext did not give any details about why it was abandoning the bid. However, Reuters said a source close to the matter had pointed to insufficient synergies, a drop in Euronext shares since the offer was made and uncertainties over timing and financing.
In a separate statement, Allfunds said its board "considered that the terms of the proposal were inadequate".
"Allfunds subsequently entered into discussions on terms with Euronext but no agreement was reached and discussions have been terminated," it said.
Euronext rallied on the news and by 0850 GMT was trading up 4.9% at €72.54, but Allfunds was down 13.4% at €7.16.