Telefónica has decided to suspend Atento IPO Investment and Teleservices due to the lack of enthusiasm among institutional investors.
Telefónica has decided to suspend Atento IPO Investment and Teleservices.
Economic weakness in the Eurozone, the uncertainty of markets and, especially, the lack of enthusiasm among institutional investors are some of the main causes that forced the company to postpone the sale of 51% of the capital of its call center subsidiary, with no new dates on the horizon.
This information was confirmed by the National Securities Market Commission (CNMV).
The sudden cancelation is owed to overall market anxiety. Markets that are behaving shyly even before a deal involving the financially solid and credit-worthy Telefónica. This could be a warning sign when right now there are a good many IPOs coming to the fore.
After a long drought in the markets, Loterías, Bankia, Banca Cívica and Talgo are quickly taking on risk. For Loterías, the cost is low. It is yet to be seen what happens with Bankia, where government funds will play a relevant role.
Also to watch is the small company Banca Cívica, whose management wants total control. There are investors out there, but they just want to make sure they are getting the right prices.
