Reuters: Hot Stocks: UPDATE 1-Autogrill studying plans to split into two

Reuters: Hot Stocks Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-Autogrill studying plans to split into two Feb 1st 2013, 08:37 Fri Feb 1, 2013 3:37am EST * Plan could lead to demerger of travel business * Move was expected by analysts * Shares up 4.0 percent (Releads, adds analyst comment, shares) MILAN, Feb 1 (Reuters) - Italian group Autogrill may split its business in two, a move that could unlock value at its Food & Beverage and Travel Retail & Duty Free divisions. Autogrill said on Friday the plan might involve a partial and proportional demerger of its Travel Retail business. In 2011, Autogrill split renegotiated loans between the two businesses, a move analysts said was a first step toward a separation of the two activities. [IDçnL6N0ASD9L] Analysts have said such a move could allow the group to extract more value from its Travel Retail business and relaunch Food & Beverage. The food and beverage unit has been suffering from a drop in sales on Italy's motorway network, where it operates a chain of restaurants, as a growing recession hits travellers' pockets. "We consider this is a catalyst for the stock ... we feel the timing for a demerger is the right one," said Milan-based broker Mediobanca in a note. The broker said the implied valuation of the Food and Beverage business was at a sharp discount to peers Compass and Sodexo. Autogrill shares were up 4.0 percent at 0835 GMT. (Reporting by Stephen Jewkes and Jennifer Clark; Editing by Hans-Juergen Peters and Dan Lalor) Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions