FNN

FNN: Deutsche notes the 15% fall in stock price since the counter resumed trading Monday, likely driven by concerns on removal of FNN from key indices (i.e. MSCI DM index and FSSTI) and concerns over plans to restore the free float. Longer term, the house believes, i) there could be synergies btwn FNN’s consumer and property business and Thai Bev/ TCC’s existing operations, and ii) potential return of capital following the divestment of APB last yr which yielded $5.6b in proceeds (~$3.89/sh) which put FNN in a net cash position. Deutsche maintains its Hold rating with TP $9.72 (15% discount to SOTP), pending greater clarity over the shareholders’ strategic review and plans to restore the free float, but notes the sharp correction has taken FNN to nearly 30% discount to its SOTP of $11.43.