Groupe Euro. Share Discussion Threads

[cyberpost] 02/7/2007 20:34

Last Updated: Monday, 2 July 2007, 15:19 GMT 16:19 UK



New Eurotunnel shares in meltdown

Newly issued shares in Channel tunnel rail operator Groupe Eurotunnel (GET) have fallen by more than 40% on their first day of trading in Paris.

Existing Eurotunnel shares were swapped for shares in the newly created Groupe Eurotunnel after the firm agreed a deal with its creditors to cut its debt.

But analysts set a target price for the new GET shares well below the level at which they were issued.

GET shares were trading down 42.8% at 44 euro cents by late-afternoon.

Analysts at Societe Generale envisage the newly issued shares trading at about 26 euros cents within one year.

Eurotunnel shares, which are set to be delisted, fell 6.5% to 72 cents.

Decades of problems

Since its formation in 1986, the Channel tunnel operator has struggled to make cash, owing to larger-than-expected construction costs and lower-than-estimated traffic through the tunnel.

Existing shareholders were able to swap their shares on a one-for-one basis in the new entity.

The share swap followed tough negotiations with creditors and put a line under 20 years of financial problems for the group.

Since the tunnel opened in 1994, losses sustained during its construction were never recovered through car and freight traffic or through its high speed train user Eurostar

[scribbler101] 02/7/2007 19:28

By hook or by crook I'll be first in this thread

[scribbler101] 02/7/2007 19:24

C'est un new thread pour le new Eutotunnel

Allons enfants de la Patriiiia