First Active lower share price target

FIRST ACTIVE could be taken out at around 6 per share when its takeover protection expires later this year, lower than previous estimates due to uncertainty about the stability of the residential mortgage market, according to analysts.

Merrion Stockbrokers had previously said an in-market acquirer could pay €6.70 per share for First Active and still generate an after tax return of 9% after synergies.

Banking analyst Seamus Murphy says the timing and price of a bid are now less certain.