German Stocks: Covestro Considers $12.5B Enhanced Bid from ADNOC

Among the major news on German stocks, Covestro AG (DE:1COV) announced that it is considering Abu Dhabi National Oil Company’s (ADNOC) enhanced bid of $12.5 billion for a potential transaction. The company stated that it has decided to engage in formal negotiations with ADNOC and has also agreed to share company information for due diligence. After the news, Covestro shares gained 5.1% today.

Covestro is a German manufacturing company specializing in polymers, catering to multiple industries.

ADNOC’s Improved Bid for Covestro

ADNOC, a state-owned oil company in the UAE, has made an improved offer of €62 per share for Covestro, up from the previous €60 per share. With this deal, ADNOC aims to enhance its global operations.

Meanwhile, Covestro stated that the discussions held thus far have been positive, indicating potential alignment between the two companies toward a possible deal. However, the company emphasized that there is no guarantee of reaching an agreement.

Considering the recent developments, Covestro has decided to postpone its Capital Markets Day, originally scheduled for June 27, until further notice.

Analysts’ Reactions

Following the announcement, Jefferies analyst Chris Counihan reiterated a Buy rating on Covestro stock with a price target of €60. This suggests an upside of 11.2% for the share price. The analyst feels that most of the matters related to the deal will be handled smoothly, given that the discussions have already reached an advanced stage.

In addition, Konstantin Wiechert from Baader Bank maintained a Buy rating, predicting a downside of almost 2%.  

What is the Price Target for Covestro Stock?

According to TipRanks, 1COV stock has received a Moderate Buy rating based on eight Buy and five Hold recommendations. The Covestro share price forecast is €53.75, which is 0.4% below the current trading levels.

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