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Kering shares touch record highs on Puma spin-off deal, but Puma shares slump

Reuters  |  PARIS 

(Reuters) - rose to record highs on Friday after the French group announced plans to spin off German sports brand to its shareholders in order to focus squarely on its more upmarket brands.

were up 0.9 percent at 412.40 euros in early session trading, with the stock at one point touching a record intraday high of 415 euros. also outperformed a 0.1 percent decline in the Europe 600 Personal & Household Goods index, which houses many

However, slumped 14 percent, with some traders mentioning downgrades to the stock following the deal.

said on Thursday that it planned to distribute 70 percent of to its investors, leaving it with only a 16 percent stake, confirming an exclusive report.

"We welcome this development, which if approved by shareholders, will increase Puma's free-float making it investable again for the first time in around 10 years.

At the same time, will be now able to focus purely on its business, where we continue to see value," wrote analysts at brokerage

(Reporting by Sudip Kar-Gupta; Editing by Sarah White)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 12 2018. 13:46 IST