SAirGroup shares recover a little ground
Shares in SAirGroup made a slight recovery on Wednesday after dropping more than 20 per cent the day before. But analysts said the shares are unlikely to recover fully until the market hears more news on the airline group's recovery plan.
A spokesman for SAirGroup, which on Monday reported a massive SFr2.9 billion ($1.71 billion) loss, said talks with a consortium of four banks were ongoing and the results of these discussions would be announced “as soon as possible”.
Shares in SAirGroup climbed 8.2 per cent higher to SFr151.50 at one stage on Wednesday, but closed only 2.9 per cent higher on the day. Shares had set a low of SFr125 on Tuesday, their lowest level since April 1995.
“This is a technical reaction to yesterday’s drop,” said Zurich Kantonalbank analyst Patrick Schwendimann. “The volume is also much lower than the 800,000 shares of Tuesday.”
Analysts are keen to hear news of a financing package for the beleaguered group, which should include preference shares and convertible loans. Whatever the outcome current shareholders face a dilution of their stakes.
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