Enel defended after price cut

27 Oct 2010

Enel cut the low-end price of its Enel Green Power IPO on Thursday in an effort to re-engage institutional investors even as retail orders fully covered the offer. The firm is now taking orders at Eu1.60 to Eu2.10 a share, from Eu1.80 to Eu2.10 previously but it is defending its decision to make the change just two days before the end of the offer period despite warnings from bankers and investors much earlier in the deal.

“The pre-marketing feedback was that the value of the company was within the original range,” said an official close to the company. He said that Enel had a duty to its shareholders to realise as much of that value as possible — in effect making an effort to ...

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