Grifols - comment

The saga appears over, with Brookfield walking away from making a bid.  We have stayed on the sidelines on this deal, not liking the asymmetry of the bonds.  Nothing official yet,  but with the Grifols family stating that they would not support any other take-private approach, the transaction is dead in the water.  

In our downside analysis of projected trading levels on a broken bid, we had expected more than 2-4 points visible this morning.  Our view of fair value in the absence of a bid was 8-10%, wider than the current 7%.  We will continue to monitor but with no operational issues in view, trading levels may not fall sufficiently to be attractive.