Due to excessive gains fueled by a media story of a potential purchase by CVC Capital Partners, which the private equity firm declined to comment on, shares of Italy’s Nexi (NEXII.MI) failed to begin trading at open on Wednesday.
According to a Tuesday Bloomberg article, CVC was contemplating a potential bid for Nexi, the largest payments processor in Europe based on transaction volume.
In addition to falling 47% in 2022, Nexi shares have fallen 22% this year, fueling rumors of possible acquisition interest.
Buyout companies have researched take-private offers, but none have taken place because the company’s shares are now trading far below its selling price of 9 euros for 2019.
Shares of Nexi were up 16.7% at 0730 and were trading at 6.72 euros per, not far from the record low of 5.25 euros set earlier this month.
Private equity companies Hellmann & Friedman, who invested when Nexi merged with rival Nets, and Advent and Bain, which introduced it to the market four years ago, are among the company’s shareholders.
Constant rumors concerning Nexi’s future have been fueled by the existence of shareholder funds that will ultimately need to liquidate their stake and the low share price.
However, the state lender CDP, which owns 13.6% of the company, is another stakeholder owned by the Italian government. 3.5% is also owned by the postal service Poste Italiane (PST.MI).
The government can thwart any unwelcome interest in a business like Nexi, considered vital national importance.
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