Compass "reduce"

04/11/06 - Dresdner Kleinwort Wasser.

LONDON, April 11 (newratings.com) - Analysts at Dresdner Kleinwort Wasserstein maintain their "reduce" rating on Compass Group (CPG-GBX).

In a research note published yesterday, the analysts mention that the company has sold-off its SSP unit for £1.88 billion, which is significantly above the estimates on a headline basis. Compass' CFO has indicated that the tax and transaction costs associated with the deal would amount to £180 million.