Cellnex ( OTCPK:CLNXF ) rose 10% in European trading after a Spanish website reported that American Tower ( AMT ) and Brookfield plan to make a offer the tower operator. Cellnex ADR s gained 8.5% . American Tower fell 2.3%.
Spanish digital news site Okdiario reported that American Tower ( AMT ) and Brookfield ( BAM ) hired advisors for a potential bid for Cellnex ( OTCPK:CLNXF ).
JPMorgan analyst Akhil Dattani cast some doubt on the report in a note on Thursday writing that Cellnex refuted that it has been approached by AMT or mandated a bank. He also pointed out that the Spanish website has had issues with credibility in the past and questions why Cellnex's CEO would have stepped down recently if a takeover offer was coming.
"The key question is at what price Cellnex and its core long-term shareholders (top 10 = 47% of the market cap) might be open to exit," Dattani wote. "We suspect the bid-ask spread could be wide."
Dattani said that JPMorgan's standalone price target for Cellnex is EU58.
Last Tuesday American Tower ( AMT ) was raised at Goldman as rates-driven slump creates buying opportunity.
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Cellnex jumps 10% on speculation of takeover offer from American Tower, Brookfield