VW makes dear joyride with Europcar enlighten

Vehicles are considered at automobile rental companies Avis and Europcar originate air Paris Charles de Gaulle airport in Roissy-en-France right by the outbreak of the coronavirus disease (COVID-19) in France May per chance perhaps well per chance moreover 19, 2020.

LONDON, June 23 (Reuters Breakingviews) - Herbert Diess is struggling to take care of in his lane. Whereas the Volkswagen (VOWG_p.DE) boss is dealing with composed sales in China read more , Paris-listed Europcar Mobility (EUCAR.PA) has rejected a 2.2 billion euro provide, Bloomberg reported on Wednesday. VW was as soon as final circling around the auto rental firm a year ago, sooner than the indebted company’s hedge fund-backed restructuring.

There could be some schadenfreude in Diess’s provide: VW offloaded the trade to Paris-listed buyout fund Eurazeo (EURA.PA) for 3.1 billion euros in 2006. And Europcar’s locations attain airports and metropolis centres could perhaps provide helpful stores for high-tail-sharing services and products and non permanent rentals. Serene, the 44 cents per part provide - a modest 13% top rate to Tuesday’s closing label – could well be a dear spherical commute. Analysts demand Europcar to plot working profit of 169 million euros in 2022. That would yield Diess a mere 6% return on his investment, assuming a 20% tax rate, no synergies, and at the side of rep debt of 199 million euros. He would increase to force straight ahead. (By Christopher Thompson)

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