Snam SpA (SRG) fell the most in almost two months in Milan after energy company Eni SpA (ENI) completed the sale of 5 percent of Snam for 3.43 euros per share.
The price is a discount of about 3 percent to Snam’s closing price of 3.53 euros yesterday. Eni raised 612.5 million euros ($752 million) from the sale, the Rome-based company said today.
Eni agreed to sell 30 percent of Snam at 3.47 euros a share to state lender Cassa Depositi e Prestiti SpA on May 30.
Snam fell as much as 4.7 percent, the biggest intraday drop since May 21, and was down 3.6 percent as of 11:22 a.m. in Milan, where the company is based. The stock has fallen 0.2 percent this year as Eni has sought buyers for its stake.
“The timing is surprising since the closing on the 30 percent stake to the CDP is expected by mid-October,” Stefano Gamberini, an analyst at Equita SIM SpA, wrote in a note today. “The operation could put pressure on the stock that had a good performance in the last few months.”
Investors have expressed interest in buying Eni’s remaining stake in Snam, Eni Chief Executive Officer Paolo Scaroni said July 16. Sovereign and infrastructure funds are among the interested parties, Scaroni said.
Prime Minister Mario Monti forced the sale of Eni’s stake in Snam to improve access to the country’s gas-pipeline network and cut energy costs.
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