Juventus shares jump after rejection of Tether's buyout offer

Source: CritpoTendencia Original Title: Juventus Shares Surge After Rejection of Tether’s Purchase Offer Original Link: This Monday, Juventus shares on the Milan stock exchange experience a strong double-digit increase. This renewed investor interest occurs after the management rejected Tether’s purchase offer. Last Friday, the issuer of the USDT stablecoin offered nearly $1.3 billion for the Vecchia Signora.

In emotional statements, Exor NV CEO John Elkann emphasized that the football club is not for sale. He also expressed that the firm, which also controls Ferrari NV and holds a significant stake in Stellantis NV, trusts the current recovery strategy of Juventus.

Thus, Elkann highlighted that after 102 years or four generations of his family, they have no intention of ceding their club to third parties. “This passion, this love story, has united us for over a century. As a family, we continue to support our team and look to the future to build a winning Juve. Juventus, our history, and our values are not for sale,” he declared.

This drama surrounding a club in serious trouble has sparked renewed investor interest in Juventus shares. At the time of writing, the club’s stock assets are up +12.23%.

Will the Juventus stock rally continue?

The rise in this powerful club’s shares reflects investor support for the Agnelli family. They are one of the most influential families in Italy and have promoted progress across various economic sectors for over a century.

In this context, Tether’s entry is mostly seen as an unwelcome intrusion into a traditionalist investor environment. However, it also reflects a reality where new money displaces the old system. This suggests that beyond the emotional aspect, Exor probably has no chance to compete with Tether in restoring Juventus’s greatness.

Significant changes in the automotive industry have forced the Agnelli family to make radical adjustments to their portfolios. Amid this tension, Juventus has been dragged into the company’s financial problems. It is at this point that Tether’s checkbook appears, which could serve as a salvation for the team, but at the cost of over a century of ownership by the Agnelli family.

Basically, rejecting Tether’s unsolicited purchase offer means things will stay as they are, which could include worsening. The investors are aware of this, which suggests that Juventus shares probably won’t sustain the upward momentum they show this Monday.

Juventus fan token JUVE declines after rejection of purchase offer

The rejection of Tether’s purchase offer by Juventus’s management is seen as a victory for traditional finance over cryptocurrencies. As a result, while the club’s shares rise, its fan token (JUVE) experiences a sharp decline during the early hours of this Monday.

After the announcement of the purchase intention by the firm led by Paolo Ardoino, the token’s price surged significantly. However, as the management dismisses the possibility, the coin began to lose ground. At the time of writing, the token shows a decrease of -7.56% despite maintaining a +12% gain on the weekly chart.

Possible next steps for Tether

Tether’s first and simplest step could be to abandon the idea of acquiring Juventus. This could be done in two ways: the first is to accept its current position as a partner and board member with more than 10% of the club’s shares. The second is to completely withdraw and liquidate its shares, which would cause serious problems for Juventus.

The other option for Tether is to fight for its goal, which requires patience to implement upcoming strategies. One of these is exerting pressure. As the second-largest shareholder, Tether can gain internal influence among the other shareholders.

It can also increase its stake to have greater influence in decision-making and challenge the club’s management measures. At this point, some stock regulations set a threshold that, if crossed, would trigger a mandatory public takeover bid (OPA).

Another variant of Tether’s pressure strategy is to demand economic and sporting results that justify the decision not to sell the club.

It is also possible that Exor has no other option if Tether makes a second offer exceeding 2.66 euros per share of the first. In that case, it would have to be an irresistible offer for a team that currently does not generate positive results.