The two biggest bearish funds holding short positions on Indra they are rubbing their hands with the mess that has been mounted in the technology company. The Government has forced the march of Fernando Abril-Martorell and has promoted as non-executive chairman Marc Murtra, a movement that has left the market misplaced and has been taken advantage of by speculators to sink the value.
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Since the April-Martorell cessation was announced, Indra has lost more than 13% on the stock market. And the bears have made their particular August. In particular Immersion Capital, which controls a short on 1.8% of the capital, followed by Fosse Capital Partners, whose bearish position reaches 0.8% of the capital.
According to market sources, Martorell’s departure was due to his opposition to participating in the purchase of the Basque manufacturer of aviation engines ITP Aero, which has been put up for sale by the British group Rolls-Royce. The Government requires that the investment funds interested in the transaction incorporate a Spanish industrial group to authorize the sale.
And this is where the Government demanded that Martorell Indra participate, and his refusal led to his sudden termination, with compensation through 6 million euros.
“The stock accumulates a fall of -14% in the last two weeks due to the uncertainties that have appeared after the surprise decision to change CEO and for the doubts that appear about the possibility of buying ITP Aero, for which a capital increase would need to be carried out“, explain the analysts of Banco Sabadell.
According to their calculations, ITP Aero is valued at about 1,500 million euros, a very important figure considering that Indra is worth about 1,200 million euros. In his opinion, “until the company does not speak out about this possibility, the stock will remain depressed.”
In addition, they consider ITP to be an asset “with limited fit and synergies” for Indra, which increases the risk that the market will continue to punish the value. This, in turn, will be used by hedge funds to amplify losses on the stock market.
In this scenario, it remains to be seen whether Indra will finally participate in this operation, albeit in a minority way. The role of the new CEO, Marc Murtra, will be decisive to regain the confidence of the market.
Indra’s Board of Directors has delegated executive functions to Ignacio Mataix and Cristina Ruiz, respectively responsible for the divisions of Transport and Defense Y Minsait, who have been appointed CEOs.
Among all of them, they will have to convince investors that the April-Martorell exit has not been a government interference to force your participation in the purchase of ITP Aero.
