CHS shares fall on fear of Vobis deal collapse
Never failed to complete deal yet, the company says
CHS shares tumbled 24 per cent on Wednesday, following fears that its would fail to complete its proposed acquisition of Vobis, the German assembler/retailer. Computer Reseller News US cites "reports in the German press" which reveal that Vobis owner Metro AG, is considering selling off Vobis subsidiary MaxData through an IPO. Claudio Osorio, CHS chairman and CEO, last month reportedly told analysts and investors last month that the company would close the Vobis deal by the end of September. with the deal still not completed, US analysts are questioning CHS's ability to raise the necessary capital. Jeff Matthews, general partner at RAM Partners LP, a US investment firm, described CHS as "one big acquisition machine. If the acquisitions stop, the train goes off the track," he told CRN. A CHS European official declined to commment on the CRN story, while pointing out that the company had "never failed to complete an acquisition yet". CHS shares closed Wednesday (October 7) at $6,compared with a 52-week high last October of $30.75. In August, CHS moved stock exchanges from NASDAQ to the NYSE, in search of a more favourable share rating.® Click for more stories
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