Fears on merger hit Astroc's share price

Astroc Mediterraneo shares closed 2.13% down at EUR 9. 65 on Wednesday after Spanish news agency Efe reported that the major shareholders in Catalan property company Aisa want to pull out of the merger agreement. Astroc's shares had gained 12.35% since July 25 when it was announced that Astroc and the much smaller Aisa were planning to merge. Astroc indicated that the negotiation with the Catalan firm was only 'at an earlier stage.'

Efe said the mood change within Aisa's board followed the release of Astroc's first-half year results last week. Astroc recorded a net loss of EUR 66 mln in the first half of 2007 from a EUR 62 mln profit a year earlier. The company's debts totalled EUR 1.3 bn. Meanwhile, Aisa's made EUR 8.5 mln profit last year on turnover of EUR 119 mln. The merger between the two groups would create the fifth largest property company in Spain, with about EUR 5 bn of assets. Astroc's shares lost another 7.05% on Thursday, closing at EUR 8.97.