The Perpetual Limited (ASX: PPT) share price has been suffering this week, with its struggles culminating in a new 52-week low on Wednesday.
In news that has likely aggravated the stock’s poor performance, its takeover bid for Pendal Group Ltd (ASX: PDL) was rejected yesterday.
At the time of writing, the Perpetual share price is $31.37, 2.43% lower than its previous closing price.
Though, that’s an improvement on its earlier performance. At its intraday low – and new 52-week low – Perpetual’s shares were trading for $31.25, representing a 2.8% slip.
For context, the S&P/ASX 200 Index (ASX: XJO) is in the green on Wednesday. It’s currently up 0.31%.
Let’s take a closer look at what might be weighing on Perpetual shares today.
What’s dragging the Perpetual share price lower?
The Perpetual share price is slumping to a new 52-week low just one day after its takeover bid for Pendal was rejected.
The offer put to Pendal earlier this month was 1 Perpetual share for every 7.5 Pendal shares held, valuing Pendal’s stock at around $6.23 apiece at the time of the bid.
However, the takeover target rejected the bid on Tuesday, saying it undervalued the company.
Interestingly, the Perpetual share price wasn’t phased by the rejection yesterday. Perpetual shares slumped just 0.4% on Tuesday, in line with the ASX 200’s dip of a similar amount.
Perpetual is also in the headlines today. The Australian Financial Review is reporting Perpetual’s head of Australian equities, Paul Skamvougeras, is going head-to-head with Brambles Limited (ASX: BXB) chair John Mullen.
Skamvougeras is reportedly against Brambles’ efforts to create plastic pallets for Costco. The publication states Perpetual holds a $350 million stake in Brambles.
Today’s drop included the Perpetual share price is 15% lower than it was at the start of 2022. It has also slumped 8% since this time last year.
The post Here’s why the Perpetual share price just slumped to a new 52-week low appeared first on The Motley Fool Australia.
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More reading
- Why Adbri, Eroad, Lynas, and Perpetual shares are tumbling
- ASX 200 midday update: Pendal rejects takeover offer, Mineral Resources rises on broker upgrade
- Pendal share price falls amid Perpetual takeover rejection: What now?
- These were the best performers on the ASX 200 last week
- Pendal (ASX:PDL) share price in the spotlight as analysts tip higher takeover bid
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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