Azzas 2154 shares decline following reports of founder disputes. Alexandre Birman and Roberto Jatahy are considering parting ways due to management differences. Analysts suggest that tensions have been ongoing since their merger eight months ago, and the stock is down 8.5% amid broader market gains.
Shares of Brazilian fashion retailer Azzas 2154 (AZZA3) experienced a decline following reports from local media suggesting that two principal shareholders are contemplating a separation. This development comes approximately eight months after the merger of the Brazilian companies Soma and Arezzo, which resulted in the formation of Azzas 2154.
Founders Alexandre Birman, representing Arezzo, and Roberto Jatahy, from Soma, are reportedly engaged in negotiations to sever ties due to disagreements in management approach, as reported by Valor Economico. Sources indicate that both individuals have enlisted legal and financial advisors to explore alternate strategies for the company.
JPMorgan analysts have characterized this news as negative, observing that rumors regarding discord between Birman and Jatahy have circulated since the merger’s approval. They noted, “Until there is better visibility on where the actual situation stands, the noise level should remain elevated with limited investor (and potential management) focus on operations.”
Consequently, Azzas 2154’s shares have fallen by 8.5% during midday trading in Sao Paulo, identifying it as one of the most significant decliners on the Bovespa (IBOV) index, which itself has risen by 2.5%.
In summary, Azzas 2154 is facing notable challenges following reports of its founders considering a separation, which has resulted in a significant decline in share value. The ongoing management disputes and uncertainty surrounding the company’s future have raised concerns among analysts and investors.
Original Source: www.tradingview.com
