Grifols - comment

Press reports indicate that Brookfield is seeking to reinitiate discussions with the Grifols family about taking the Company private. As a reminder, Grifols board turned down the €10.50 share offer in late November, with Brookfield deciding to walk away from the bid. This caused the share price to fall 20% €8.50 and the shares have languished in the low €8’s since then. Temasek and GIC (Singapore Investment Corporation) supported the previous bid, but we are unsure if they are currently part of any discussions.  

The equity and bonds have both rallied this morning, with the equity up 10%+ to above €9 a share. The bonds are currently up 2-3pts as they would benefit from their change of control clause.