Meyer Burger Deal Makes Sense, But Pricey - Vontobel
Meyer Burger's (MBTN.EB) EUR356.6M acquisition of Roth & Rau (R8R.XE) makes strategic sense, but comes at a hefty price, says Bank Vontobel. While strategically Meyer Burger has made no secret of its intention to move into the production of solar cells, "the acquisition will certainly deteriorate the balance sheet quality of the company," says Vontobel analyst Michael Foeth. He says the deal also poses integration challenges. His buy rating and CHF48 target price are under review. Shares closed at CHF41.50 Friday. (SQ / 11.04.11)