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Brookfield reaffirms its interest in Grifols, ask more time for analysis, sources say
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Brookfield reaffirms its interest in Grifols, ask more time for analysis, sources say
Oct 3, 2024 12:25 AM

LONDON, Sept 30 (Reuters) - Canadian fund Brookfield

reaffirmed its interest in a potential takeover of

Spanish drugmaker Grifols and requested more time to

complete due diligence for its possible bid, two sources with

knowledge of the matter said on Monday.

Brookfield sent a letter on Monday to the board asking for a

few more weeks to complete the process that began this summer,

according to the people, who spoke on condition of anonymity

because they were not authorized to speak publicly.

The Canadian private equity firm said in July it was

interested in launching a takeover bid jointly with the Grifols

family, pending successful completion of due diligence.

Brookfield is expected to execute the deal in collaboration

with other investors in its funds, a different source with

knowledge of the talks said earlier this year. It has also begun

discussions with banks to secure funding for the potential

takeover.

Since early January, Gotham City Research, a short-seller

fund, has released multiple reports accusing Grifols of

overstating earnings and understating debt, which Grifols

denies.

These accusations have wiped out around 35% of the

Barcelona-based company's market value.

Spain's stock market regulator CNMV said last week it was

sanctioning short-seller fund Gotham City Research for allegedly

manipulating the market for Grifols shares, and the pharma group

for defective financial reporting.

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