Campari Shares Rebound After Top Investor Pledges to Raise Stake — Update
By Adria Calatayud
Davide Campari-Milano's stock jumped after majority shareholder Lagfin outlined plans to buy shares valued at up to 100 million euros ($111.2 million), saying the company's market price doesn't reflect its true value.
Shares in Campari traded 5.6% higher at 7.37 euros in early Thursday morning trade in Europe, rebounding from losses in recent days, but remained down about 28% since the start of the year.
The move by Lagfin followed news that Matteo Fantacchiotti, Campari's chief executive, resigned from his role for personal reasons, just months after taking the helm at the Italian liquor maker.
Lagfin said late Wednesday that the purchases would be carried out in the coming days, subject to market conditions. Lagfin owned 51.4% of Campari's ordinary shares and held 82.5% of its voting rights at the end of August, according to Campari's website.
The investor said its intention to buy more shares shows its long-term commitment to Campari and its full support for the company's growth strategies.
Campari's shares have fallen in recent days to levels last seen in 2020, during the Covid-19 pandemic. The stock closed 7.5% lower on Wednesday on news of Fantacchiotti's departure.
Like many of its peers, Campari benefited from positive trends during the pandemic, when consumers purchased beverages to drink at home, but the industry faced more normal consumption patterns lately and the company has cautioned on soft markets, distribution challenges and increased price competition in its core markets.
Write to Adria Calatayud at adria.calatayud@wsj.com
(END) Dow Jones Newswires
September 19, 2024 03:51 ET (07:51 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s Happening in the Markets This Week
-
Worst-Performing Stock ETFs of the Quarter
-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue
-
Industrials: Many Stocks Overvalued After Q3 Outperformance
-
Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities
-
What the Election Could Mean for Big Tech Stocks
-
3 Lessons From Recent Stock Market Drama
-
Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts
-
Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued
-
Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks