A test of the recent downward trend emerged for Deutsche Börse shares on Thursday following a JPMorgan recommendation.
Ultimately, the Eschborn shares climbed 1.81 percent above their XETRA closing to 225.50 euros. Since the record in May, Deutsche Börse shares have lost up to 31 percent before recovering in the previous week.
JPMorgan expert Enrico Bolzoni attributed the relatively weak run in the second half of the year to the relatively low volatility on the markets, the disappointing development in the investment management solutions sector and concerns about AI burdens. However, the valuation of the share does not do justice to the quality and broad positioning of the financial company. With his price target of 292 euros, he believes they can return to record levels.
Deutsche Börse is offering billions for the Allfunds fund platform
Deutsche Börse wants to take over the fund sales specialist Allfunds for billions. The DAX group confirmed on Thursday exclusive discussions with the Allfunds Group about a possible acquisition of all shares. Analyst Enrico Bolzoni from JPMorgan bank described a takeover as strategically sensible.
According to Deutsche Börse, the non-binding offer under discussion provides for a consideration of 8.80 per Allfunds share: 4.30 euros in cash and 4.30 euros in the form of new Deutsche Börse shares. This corresponds to a total of around 5.3 billion euros.
In addition, there will be a dividend of 0.20 euros per share for 2025 as well as dividends of up to 0.20 euros per Allfunds share for 2026 and 0.10 euros per quarter in the 2027 financial year.
Allfunds provides trading and execution systems, data analytics and compliance services to fund managers and distributors. Assets under management amounted to 1.7 trillion euros at the end of September. The largest shareholders are the investment company Hellman & Friedman and the French bank BNP Paribas, which in total hold almost half of the shares.
Allfunds obviously fits in with the plans of the head of Deutsche Börse, Stephan Leithner, to continuously develop the group reorganized by his predecessor Theodor Weimer. In recent years, this has made Germany’s largest stock exchange operator more independent of market fluctuations through takeovers and the expansion of activities outside of the stock and bond markets.
Whether there is a binding offer depends on a number of conditions, emphasized Deutsche Börse. This includes the satisfactory review of Allfunds’ books and final approval by the boards of both companies. The DAX group also announced that a takeover would mean consolidation in the European investment fund industry. Customers and the EU stock markets could benefit significantly from a combined platform.
JPMorgan industry expert Bolzoni also sees it this way. In an initial reaction, he pointed to the potential to expand the geographical presence of the existing fund services (IFS) business. Because IFS is historically very strongly anchored in Germany and Switzerland, while Allfunds is more strongly represented in Spain, Italy and France.
As a result of the current news, Allfunds shares rose by a good fifth to 8.11 euros.
A trader pointed out that if a takeover were to take place, from Deutsche Börse’s perspective it would be a rather smaller deal. The market value of Allfunds of around 4.4 billion euros only accounts for around a tenth of the market capitalization of the German stock exchange operator. There have also been speculations about a purchase offer in the past.
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FRANKFURT (dpa-AFX)
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