Netia disclosed that Third Avenue Management has gone above the 5% threshold of the total number of votes at Netia’s general meeting of shareholders. Third Avenue now holds 23,491,762 of Netia’s shares, representing 6.04% of Netia’s share capital. Prior to the last share purchase on May 16, Third Avenue held 19,400,790 of Netia’s shares, which represented 4.98% of the Netia’s share capital.
We believe the news could have a marginal positive trading trading impact on Netia's shares. However, we maintain our view that Netia's underlying fundamentals are weak and the shares are overvalued, and hence recommend selling into strength on the back of the news.