No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Deutsche Bank cut its recommendation on Tate & Lyle on Friday to 'hold' from 'buy' after the company agreed to be taken over by US peer Ingredion in a 2.7bn deal.
The bank noted that following Ingredion's firm offer for Tate, the shares have risen to 556p.
"The implied spread to the full offer of 615p now stands 10.6%, and is circa 7% below our 595p target price," it said.
"As such we think that the risk reward dynamic has shifted to be more neutral and accordingly we move our rating from buy to hold."
DB noted that Tate has provided a relatively long time frame for completion of the deal, citing the second half of 2027.
"Tate has identified eleven jurisdictions where it foresees potential anti-trust issues," it added.
At 1049 BST, the shares were flat at 554.25p.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.