Kone’s share is still falling – “A lot of crunching and crunching”

The elevator company that announced a huge business deal on Wednesday The machine the share price fell by more than three percent on Wednesday, and the price has also been on the decline today, Thursday.

“Yes, you can clearly see that there is now quite a lot to digest and data, forecasts, estimates and other things that need to be reconciled here”, the editor Perttu Räisänen said May Day directly In the Talousamau program.

Kone announced on Wednesday morning that it will buy its German rival TK Elevator with an enterprise value of 29.4 billion euros. Previously, there were rumors that it was 25 billion euros.

“Here, the purchase price has risen a bit. It must have been partly influenced by the fact that quite a large part of the purchase price is paid in Kone shares, which creates uncertainty for the sellers as to whether the value of the shares will be maintained or whether there may still be fluctuations in the shares before the deal is completed,” Räisänen analyzed.

The merger of Kone and TK Elevator is the largest business transaction in Finnish history. Räisänen estimates that the merger of the two companies will not be an easy process.

“Two truly world-class companies need to be brought together. It’s not really a smooth seam that can be sewn directly, but it’s quite a lot of twisting and turning to get it together in the end,” Räisänen reflected.

Thursday’s Economic Morning was hosted by a journalist Tuomo Hyttinen.

You can watch May Day’s Financial Morning in its entirety below.