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Persistent Offers €81 Per Nagarro Share After Unexplained Pre-Announcement Rally

Nagarro’s CEO has asked BaFin to examine whether the big Friday price moves reflected misuse of confidential deal information.

Overview

  • Late Friday the price of Nagarro shares jumped about 20 percent before any public news, and Persistent and Nagarro announced a takeover deal that evening with Persistent offering €81 per share.
  • On Monday Nagarro stock climbed further, rising roughly 92 percent to €77.60 as the market priced in the €81 offer.
  • Nagarro CEO Manas Human publicly called for a BaFin inquiry into the unexplained trading and BaFin said it continuously monitors markets but would not comment on any specific case.
  • Both companies said they kept merger teams deliberately small and disclosed advisers by name, with Persistent advised by Barclays and Hengeler Mueller and Nagarro by JPMorgan and Freshfields.
  • Under German rules unusual pre-announcement moves can trigger insider-trading or market-manipulation probes, which could bring formal investigations, reputational damage and scrutiny of who had access to deal information.