Following the latest news on Covestro (OTCPK:CVVTF)(OTCPK:COVTY), it is essential to review our latest investment thesis and comment on the potential acquisition from Abu Dhabi National Oil Company (ADNOC). Before commenting on Covestro, we should say that Germany
Covestro: Takeover Approach, Still Neutral
Summary
- Covestro rejects ADNOC's proposed valuation of €50 per share, considering it too low.
- ADNOC aims to acquire Covestro to reduce long-term exposure to oil and gas and benefit from its sustainability initiatives.
- Negotiations remain open; however, we believe that Covestro is now fully priced in.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.