Retailer Casino's Shares Dip As Rallye's Stock Gets Suspended
Shares in French supermarket retailer Casino fell back on Thursday, as trading in the shares of Casino's parent companies Rallye, Finatis and Fonciere Euris were suspended.
A spokesman for Casino said Rallye would make a statement later on, but declined to provide further details.
Casino, whose credit rating was further pushed into junk status by Standard & Poor's in March and which was also downgraded by Moody's in April, has embarked upon asset sales to cut its debt and ease concerns over the financial position of both Casino and its parent holding company Rallye.
"The suspension of the parent company shares suggest that a form of debt restructuring will have to take place in those companies," wrote Bernstein analyst Bruno Monteyne.
Casino's CEO Jean-Charles Naouri controls Casino via Rallye, which in turn is controlled by Finatis and Euris.
Shares in both Casino and Rallye have fallen by roughly 20% so far in 2019, and their slump on the stock market has drawn the attention of some hedge funds.