McDonald′s bun maker Aryzta′s €800m plan ′is excessive′
The Swiss-Irish bakery’s stock jumps as much as 35% on hopes that objections by Cobas Asset Management will halt the fund raising
Zurich — McDonald’s hamburger bun maker Aryzta’s plan to raise €800m in new capital is excessive, the company’s biggest shareholder said on Monday, adding it would present less dilutive alternatives soon. Aryzta’s stock jumped as much as 35% on hopes that the move by Cobas Asset Management, which has a stake of more than 14.5%, would force the Swiss-Irish bakery to take more modest steps as it seeks to cut debt and restore growth. The shares were up 25% by 12.11pm GMT. They are down by two-thirds this year and more than 85% since 2014. Aryzta, which also owns Otis Spunkmeyer cookies, Brea Bakery breads and Cucina Grande pizza, has been hit partly by rising costs in North America and weak consumer spending in some European markets, particularly in Britain after its Brexit vote in June 2016. Earlier this month Aryzta, which lost more than $1bn in 2017, struck a deal with banks on a capital increase. Cobas, which has been building up its Aryzta holding in recent months, said progress s...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.