The Spanish stock exchange has suspended the listing of shares in Bertolli and Carbonell olive oil maker SOS Corporacion Alimentaria.
The move follows reports that SOS will post significant losses for the year and comes amid rumours of a revised takeover bid for the company.
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According to Spanish reports, rival Nueva Rumasa has launched a revised bid to acquire a 30% stake in the business.
SOS, the maker of Bertolli olive oil, previously dismissed a bid from Rumasa, arguing that it undervalued its business.
According to reports, Rumasa has raised its bid from EUR1.5 (US$2) per share to between EUR2.5 and EUR3 per share.
When contacted by just-food, SOS declined to comment on either the delisting or whether it has received a revised bid from Rumasa. Officials at Rumasa were unavailable at time of press.
SOS’s share price had plummeted 10.33% yesterday (22 February), dropping to EUR2.17 a share at the market’s close. The Commission Nacional del Mercado de Valores (CNMV), the Spanish securities regulator, did not provide a reason for the suspension in SOS’s shares.
Responding to speculation in the Spanish press that SOS’s losses would be greater than expected, the company had indicated that it would likely book losses of around EUR179m in fiscal 2009, down from losses of EUR190m the previous year.
SOS is in the process of renegotiating its debt, which stands at about EUR1.2bn. The company has embarked on a massive debt reduction programme, including the divestiture of its rice business, with the aim of halving debt levels over the next two years.
