--Insurer Talanx won't go public this summer -- sources
--Uncertainty has brought German IPOs to a standstill
--Osram, KSPG may go public in fall; Evonik next year
FRANKFURT--Insurance company Talanx AG Tuesday became the latest
German company to postpone its initial public offering plans
because of deepening economic uncertainty and choppy financial
markets, according to people familiar with the matter.
Talanx had considered launching its long-awaited IPO as early as
this summer. The postponement follows German chemicals company
Evonik Industries AG, which Monday also halted its IPO plans.
A Talanx spokesman declined Tuesday to give a date for a
prospective IPO, saying the insurer isn't under pressure to go
public.
The outcome of the Greek election Sunday, which many considered
to be a de facto referendum on whether the country would stay in
the euro zone, did little to stabilize financial markets this week.
Investors remain worried about the future of other week European
economies, such as Spain and Italy. As a result conditions are too
difficult for Talanx to continue with its listing plans, the people
familiar said.
Traditionally IPOs aren't carried out at this time of the year
because of the approaching summer vacation period in mid-July.
Companies going public usually issue an intention to float four
weeks ahead of the planned first trading day. That means Talanx
would have to announce plans this week to complete its IPO before
the summer. One person said "this would be much too risky in view
of the turbulence in Europe."
The chief executive of Evonik's main shareholder, RAG-Stiftung,
Wilhelm Bonse-Geuking, said the difficult situation in the euro
zone has made investors very cautious, implying they were willing
to buy the shares only at a steep discount.
The combined volume of Germany's IPOs is a mere EUR23 million in
the year-to-date, showing how unattractive the market is. The pace
of public offerings isn't expected to pick up ahead of the
summer.
Financial market uncertainty can be seen from the V-Dax, an
index for the volatility of German stock prices, which stands at
30--significantly above the 15-to-20 range regarded as suitable for
IPOs.
Several German companies still aim to list their businesses
provided conditions pick up by the autumn. The Siemens AG (SI)
management board has indicated its Osram subsidiary may go public
in the third quarter.
Defense company Rheinmetall AG (RHM.XE) may list its automotive
supplier unit KSPG. The company will decide this week about a
possible summer IPO, but it is regarded as unlikely.
Evonik, however, isn't expected to try going public again this
year. IPO bankers say the company will likely conduct a listing at
the earliest in fall 2013, when minority shareholder CVC can sell
its stake independently from RAG.
Write to Madeleine Nissen at madeleine.nissen@dowjones.com and
Eyk Henning at eyk.henning@dowjones.com