Grifols - Fundamental and Merger Arb

Post the sale of the SAARS minority stake, we have evaluated Grifols liquidity and future deleveraging in the context of taking a position. We highlight the favourable market conditions for the industry in total but individual players will have to overcome some outstanding issues to take advantage of the potential growth. We are conscious that the family may lead a buy-out of the Group, which has already impacted on trading levels of the bonds.