Did you see Vueling case
Did you notice the Vueling case? How is this possible that an investment bank sets the objective price of its shares in €2.50 per share upon the 2nd of October, 2007, just after replacing Vueling shares at €31 per share in June, 2007?
Expert
It is factual. After placing the shares of Vueling at €30 per share in December, 2006 and at €31 per share in June, 2007 and the 2nd of October, 2007 and the investment bank set the objective price at €2.5 per share.
1st December, 2006. IPO of Vueling at €30 per share. The first day, closing price was €32.99 per share.
23 February, 2007. Maximum at €46.7 per share.
6th June, 2007. Placement of the 20.97 percent of the share capital of Vueling (shares of Apax) at €31 per share.
19th July, 2007. One of the placement banks recommends the selling at the objective price at €20 per share.
August 2007. Vueling admits not being able to fulfil the business plan: that the shares fall in 30%.
31st August, 2007. New objective price of Vueling: €12 per share.
3rd October, 2007. The same placement bank values Vueling at €2.5 per share. Quotation: €8 per share.
23rd October, 2007. The bank increases the value of a share from €2.5 at €13, and this even recommends to 'selling.'
28th December, 2007. The last quotation of year 2007 is the value of share from €8.95 per share.
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