Stada surges on report of buyout talks with CVC

Shares in Stada Arzneimittel AG shot higher on Wednesday following a report the German drug maker has held informal talks with private equity firm CVC Capital partners regarding a potential buyout.

The Wall Street Journal cited people familiar with the matter as saying that the deal could value the company at around €3.7bn.

It was understood that Stada’s chief executive Hartmut Retzlaff held an initial meeting with CVC, but sources said there was no guarantee a deal will be done.

Earlier this month, activist investor Active Ownership Capital, which has built a 5% stake in the group, tried to appoint five new members to the supervisory board to improve its competence.

The fund also criticised management, saying Stada had underperformed its peers in profitability and share price development.

At 1510 BST, Stada shares were up 7% to €46.66.