PARIS — Could struggling Danish jewelry group Pandora soon fall under new ownership?
Financial analysts on Friday attributed the 12 percent surge in the company’s stock price in just over 24 hours to swelling rumors that U.S.-based private equity funds are looking to buy out the company.
Pandora stock closed Friday up 8.9 percent to 424.7 Danish krone.
A Pandora spokesman declined to comment on the reports. He said simply that in terms of the company’s shareholders, “there are no major shareholders holding more than 5 percent of the shares.”
On whether a sale could be imminent, Per Hansen, an investment economist at Nordnet in Copenhagen, said: “It depends upon the price. Pandora over the last 18 months has gone from an all-time high of close to 1,000 Danish krone down to nearly 300 Danish krone, so when a price plunges like that, investors get much more humble. They get much more satisfied if there is a takeover bid in the market with a premium of 15 to 25 percent. In this instance, I think there could be a bid, and the price might be really vital for investors to decided whether it will be successful.”
Also fueling the stock’s steep rise, according to Hansen, were reports that Pandora has hired Rothschild to advise the company on potential buyout suitors and to work out “the right value of the company, given where Pandora is now.”
A third factor, he added, was feedback from Pandora dealers in the U.S., who noted their best performance in three years. That information was gathered through channel checks by Scandinavia’s Carnegie Investment Bank, “which has played a vital role in anticipating the share price plunge from early 2017 to where we are today,” Hansen said.
There’s been a lot of volatility at Pandora of late. The chief executive officer spot remains open at the Copenhagen-based charm bracelet specialist since the departure of Anders Colding Friis in late August. That came in the wake of a disappointing performance by the firm in the second quarter of 2018, the first full quarter with collections from Pandora’s new design team. Colding Friis was the company’s fifth ceo since it went public in fall 2010.
In the interim, Pandora is being managed by its chief financial officer, Anders Boyer, and chief operating officer Jeremy Schwartz.
The firm’s third-quarter results will be released on Nov. 6.