Metro AG: Quid of the ex-post credit situation in separatly listed entities?
SELL vs. NEUTRAL, Fair Value EUR26 (-8%)
To the question of whether we can rule out a rights issue in order to address the capital structure problem ahead of the spin-off, management refused to answer. Some answers or non-answers can tell us a lot and, in this case, create an uncomfortable zone of uncertainty. On top of that, following the recent strong share performance, we now have 7% downside risk on our FV (EUR26). Downgrade to Sell vs. Neutral.
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