Highlight has private eyes for Constantin
EmptyGerman indie giant Constantin Film could be squeezed off the stock market and taken private, according to reports swirling around the German industry.
German business daily Handesblatt speculated Tuesday that Constantin majority shareholder Highlight Communications could move to squeeze out Constantin's smaller shareholders as early as next week, ahead of Constantin's March 29 year-end shareholder conference.
Meanwhile, Constantin stock continues to outpace the market, gaining 6.3% on Tuesday to €24.45 ($32.56).
"Squeeze-out rumors are boosting Constantin's shares, no doubt about it — it's what everyone is talking about right now," one trader at the Frankfurt exchange said.
Constantin's surge hasn't stopped since the stock hit bottom at a little more than €9 a year ago. While squeeze-out rumors have helped, so have the numbers presented by company CEO Fred Kogel, which have repeatedly beaten expectations.
Next week, Kogel is expected to reveal record earnings and profits, with revenue forecast to top €265 million ($352 million) and pretax (EBIT) profits climbing from €11 million a year ago to €14 million ($18.6 million).
Boxoffice hits like Tom Tykwer's "Perfume: The Story of a Murderer" as well as a burgeoning and high-margin TV business have been the main reasons for Constantin's recent success.
Reports of a possible squeeze-out by Swiss-based Highlight go back to January 2006, when Highlight acquired an additional 25.1% of Constantin from "Perfume" producer Bernd Eichinger. The deal put Highlight's share of Constantin at more than 91%.
Highlight and Constantin declined comment Tuesday.