Exor, now it’s official: now that the agreement has been reached, tons of money is on the way. Here’s what happened.
In 2021, as some probably remember, the company Philips had come under fire for some problems caused by one of its products. Come on Respironics ventilators, specifically, which had been recalled due to safety problems. They were, so it seems, defective.
Well, the matter is now closed and the Dutch giant, as a result of the agreement reached with the US authorities, made a leap on the stock market not bad. The company, these are the terms of the agreement, will pay 1.1 billion dollars to put an end to disputes. A much lower sum than what analysts had previously estimated.
But let’s go back to the stock market. The company’s share price rose by approximately 30%: in Amsterdam it closed at 25.54 euros, with a peak of 29 during the day. This means that the value of the Agnelli-Elkann family’s stake, through the Exor holding company, now stands at quota 3.5 billion euros. Almost a billion more than the family invested in Philips last August. And even Exor itself, in response, registered a in Amsterdam significant increase of 4%.
Philips flies on the stock exchange, Exor too: here’s what happened
The agreement reached was providential for Philips, whose problem with the Respironics ventilators had had significant repercussions on its financial results and also on the value of its shares over the last three years.
Reaching the agreement made it possible to avoid even higher losses: analysts estimated that they could be between 2 and 4 billion dollars, but the most catastrophic had even spoken of 10. In the end, therefore, the agreement was more than advantageous. The same also provides that insurance companies will reimburse 540 million euros during the year. Don’t think, however, that Philips is admitting responsibility for the injuries caused by the accused devices.
The agreement concerns, more than anything else, requests for compensation received in the courts of the US country, together with requests that could potentially reach the census register.
