Spanish property firm Astroc Mediteranneo said it could acquire five or six smaller firms to simplify its company structure. Speculation about Astroc's financial position earlier this year led to a 70% drop in the company's share price and triggered a massive sell-off of Spanish property shares on fears the Spanish property market was set to implode. Astroc shares had risen 1000-fold since it IPO in May 2006, before collapsing following the panic in April of this year.
Spanish property firm Astroc Mediteranneo said it could acquire five or six smaller firms to simplify its company structure. Speculation about Astroc's financial position earlier this year led to a 70% drop in the company's share price and triggered a massive sell-off of Spanish property shares on fears the Spanish property market was set to implode. Astroc shares had risen 1000-fold since it IPO in May 2006, before collapsing following the panic in April of this year.
Astroc has dismissed reports of its impending collapse and earlier this month unveiled its plans to merge with partners Rayet Promocion and Landscape to create a less complex company structure. The firm now says it is also looking to buy up smaller peers with a net asset value of between EUR 200 mln and EUR 600 mln.