Tiger Brokers

BUZZ-Morningstar says market reaction to Soul Patts-Brickworks merger 'overdone'

Reuters
Feb 09
BUZZ-Morningstar says market reaction to Soul Patts-Brickworks merger 'overdone'

** Morningstar says a bounce in Washington H Soul Pattinson SOL.AX shares after merger with Brickworks is over and price is falling towards Morningstar valuation estimate

** Investment research firm retains fair value estimate for investment firm at A$35, stock at A$37.01 as of last close

** Morningstar says the market's ebullient reaction to the Brickworks takeover last year looked "overdone"

** We think Brickworks shareholders were willing to pay a premium to exit the cross-shareholding that had entangled the two companies since the 1960s - Morningstar

** Adds, investors may have been enthusiastic about greater institutional interest and passive buying, but this has not been enough to support the share price so far

** Soul Patts marginally down 0.4% YTD, as of last close

(Reporting by Nikita Maria Jino in Bengaluru; Editing by Cynthia Osterman)

((Nikita.Jino@thomsonreuters.com;))

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