20-05-2008

TVN stock plummets following purchase of stake in

By FNE Staff

Polish commercial broadcaster TVN saw its share price drop to a nine-month low on Tuesday, May 20, following its purchase of a 25% plus one share stake in the digital TV platform ‘n'. TVN closed at PLN20 €5.91, down 9.3%.

TVN, which trades as TVNN on the Warsaw Stock Exchange, had seen a slight bump, to PLN23 at the release of its promising first quarter report May 12. At the time, a spokesperson told Reuters that the company was considering buying a stake in ‘n' although analysts thought TVN would wait until the digital TV platform became profitable, expected to happen next year.

TVN will purchase the stake from parent company ITI for €95 million. However the drop in its stock value, of €0.61 per share, amounted to more than twice the cost of its ‘n' stake.