Grifols shares tumbled 10% on Wednesday after sources revealed that Canadian private investment giant Brookfield Asset Management is planning to abandon its takeover bid for the Spanish pharmaceutical company, according to a report by Bloomberg.
At one point, the stock had fallen as much as 12%, sharply underperforming Spain’s blue-chip IBEX 35 index, which was down 0.6%.
According to one source, the Canadian private equity firm is backing out due to a disagreement over Grifols’ valuation. It remains unclear if the two parties might resume negotiations in the future, the sources said.
Brookfield had announced in September its interest in pursuing a joint takeover bid with the Grifols family, contingent on the successful completion of due diligence.
Both Grifols and Brookfield declined to comment on the latest developments.
