Business
Brazil's Fleury falls on reports of Rede D'Or discussions halt
Brazil's Fleury falls on reports of Rede D'Or discussions halt
About this update from Fleury Sa
** Shares in Brazil's medical diagnostics firm Fleury BMFBOVESPA:FLRY3 fall after a media report said hospital chain Rede D'Or BMFBOVESPA:RDOR3 suspended negotiations to potentially acquire the laboratory** Brazilian newspaper O Globo reports over the weekend that Rede D'Or halted discussions with Fleury due to disagreements over the deal's valuation** The report added that Rede D'Or opened negotiations with two other companies in the sector instead, Dasa BMFBOVESPA:DASA3 and Allianca BMFBOVESPA:AALR3** In a securities filing on Monday, Fleury confirms the discussions with Rede D'Or, but notes there is no decision to suspend or continue with any transaction ** Allianca says in a statement it is not aware of any ongoing negotiations with Rede D'Or** Analysts at JP Morgan say they expect Fleury's shares to be "under pressure" as the news should "bring to surface complexities around the deal"** Fleury's Sao Paulo-listed shares fall more than 4% in early trading, the biggest decline in the benchmark stock index Bovespa BMFBOVESPA:IBOV, which is up 0.8%** Year-to-date, Fleury is up more than 30%