Investors are signaling skepticism over the valuation set for KNDS, the Franco-German defense conglomerate preparing for its initial public offering.
According to a report by Handelsblatt, potential buyers believe the price expectations held by the company's existing owners are too high, creating a fresh hurdle for the deal's execution.
This pricing friction emerges as the company navigates a complex path toward a dual listing.
The resistance from institutional investors suggests that the market may not be willing to pay a premium for the merged entity at the current asking price, potentially forcing a renegotiation of terms or a delay in the timeline.
The valuation dispute compounds earlier reports of internal organizational difficulties within KNDS.
The company, formed by the merger of French manufacturer Nexter and German firm Krauss-Maffei Wegmann, has faced scrutiny over its integration process.