Démász shares rally to six-year high after EDF buyout offer
Tuesday, August 29, 2006, 08:29
Shares in Démász Nyrt rallied to a six-year high after top French power company Electricite de France SA offered Ft 29 billion to buy the rest of Hungary's biggest electricity distributor.
EDF's offer is valid for 50 days, it said in a statement to the Budapest Stock Exchange (BÉT) on Monday. Démász shares jumped 11% to Ft 19,250, the highest price since April 2000, at 3:47 p.m. after trading resumed in Budapest. The stock has added 13% this year, propelling the company's market value to Ft 71.3 billion.
EDF, based in Paris, is trying to boost its holding after buying a majority stake in Szeged, south Hungary-based Démász in 1995.
Its main competitor in the local market is E.ON AG, which has spent €1 billion in Hungary in the past 10 years and is the country's largest electricity distributor. (Bloomberg)