FNAC Darty: Heading For MBO

Perhaps not too surprisingly, since we have entered the apparent twilight zone of the inverted yield curve shares of FNAC Darty have come off the boil since the turn of the month’s speculation regarding the retailer.

fnac

At the time the betting was on the company being taken private by one of its main shareholders, Ceconomy. The latest twist however, is that this scenario may be shelved in favour of a good old fashioned Management Buyout. At least the mooted level for such a deal at €90 remains the same.

fnac

As can be seen from the daily chart of FNAC, the highs for the stock over the past year have been towards €90, and therefore a deal around this zone would not be excessive. In the near term the ideal scenario is that the stock holds the December uptrend line towards €65 as it has so far this week.

Author: Zak Mir

Financial commentator, interviewer, technical analyst

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