French-listed private equity group Wendel is facing a potential paper loss of more than â¬500m ($735m) on its controversial investment in a construction company following its decision to refocus on public equity investments in the wake of the credit crisis.
Wendel has invested â¬1.5bn in Saint-Gobain, increasing its stake twice in November to hold 18% of the construction materials company. An analyst report from JP Morgan Cazenove estimates "a 35% unrealised loss on the net Saint-Gobain position, which has taken its toll on the [Wendel] net asset valueâ.
