Why Is Spanish Healthcare Grifols Stock Trading Lower On Friday?

Core Viewpoint - Grifols SA has ended discussions with Brookfield Capital Partners regarding a potential acquisition, following a rejected indicative offer of 6.45 billion euros ( $6.81 billion) for the company [1][2]. Financial Performance - For the first nine months of 2024, Grifols reported a revenue growth of 9.1% year-over-year at constant currency, with gains across all business units [3]. - The company achieved an adjusted EBITDA of 1.7 billion euros over the past 12 months [3]. - Grifols improved its financial stability by reducing debt after selling a 20% stake in Shanghai RAAS for 1.6 billion euros [3]. Acquisition Discussions - Brookfield Capital's proposal was deemed to undervalue Grifols' growth prospects and long-term potential, leading to the mutual agreement to terminate discussions [2]. - In August, Brookfield Asset Management sought 9.5 billion euros ($ 10.6 billion) in debt financing for a potential take-private deal for Grifols [4]. - Grifols had previously confirmed that Brookfield engaged in preliminary discussions with key shareholders regarding a potential joint offer to delist the company's shares [4]. Legal Issues - The National Court has accepted a complaint from the Anti-Corruption Prosecutor's Office to investigate Gotham City Research and others for allegedly disseminating misleading information about Grifols to manipulate its stock price [5]. - Gotham City Research released a short report in January alleging that Grifols manipulated its accounts to present a distorted leverage ratio [6]. Stock Performance - Grifols' stock (GRFS) experienced a decline of 12.9%, trading at $7.03 during the premarket session [7].