Eurotunnel Stock Dives on 1st Day of Trading
LONDON — Eurotunnel shares sank 29% Thursday, the first day they were traded, underscoring the risky nature of investing in the Anglo-French consortium, which is building a rail tunnel under the English Channel.
The stock, which was sold in units of two shares for 350 pence, or about $6.30 a unit, opened at 284 pence and quickly sank to 250 pence. It spent most of the day near that level and finished there on the London Stock Exchange.
The shares were little affected when the London stock market plunged in response to the release of disappointing U.S. trade data.
In Paris, Eurotunnel units fell 27%to close at 25.55 French francs, or about $4.56, from an offer price of 35 francs. They opened at 27 francs.
Some London dealers said they were surprised by the weakness of the shares even though they had expected something of a decline because the offer had been undersubscribed.
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