Bloomberg News

Lotto24 Soars on First Day After Tipp24 Spinoff: Frankfurt Mover

July 03, 2012

Lotto24 (LO24) AG, the state lotteries broker spun off from Tipp24 SE, soared on its first day of trading in Frankfurt as its former parent declined.

Lotto24 closed at 3.45 euros, 38 percent higher than the offer price of 2.50 euros. The company traded for the first time after Tipp24 shareholders approved the spinoff last month. Tipp24 fell 2.1 percent to 38.30 euros, the eighth consecutive decline, for the longest falling streak since it went public in October 2005.

“Lotto24 worked as a dividend in kind,” Sascha Berresch, an analyst at Hauck & Aufhaeuser AG in Hamburg, said by phone today. “It’s possible that some investors only bought Tipp24 shares to get at the Lotto24 stock and now they are dumping them.”

To contact the reporter on this story: Myriam Wecker in Frankfurt at mwecker2@bloomberg.net

To contact the editor responsible for this story:


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus