Shares of A.S. Roma (MIL: ASR) crashed more than 50% this week after the U.S. billionaire Dan Friedkin said he will not pay a premium price to the club’s minority investors. As a result, the Roma stock price printed a 7-year low. 

A.S. Roma, one of the biggest Italian football clubs, is a subject of the takeover offer from the U.S. billionaire Dan Friedkin. Last week, Friedkin agreed to buy the Italian club for almost 600 million euros, out of which 413 billion euros will be used to pay debts.

Friedkin, the Houston-based CEO of The Friedkin Group, will assume control of the club from a consortium led by U.S. businessman James Pallotta. The consortium owned 86.6% of all Roma shares, the stake that is now in Friedkin’s hands. 

The rest is owned by minority shareholders, with Friedkin refusing to pay more than 0.1165 euros per share to buy Roma’s minority investors’ holdings. The offer is around 5 times lower than last week’s price of 0.59 EUR per share, which caused shares to lose over 50% of the value.

Friedkin is expected to arrive in London next weekend and close the deal. 

AS Roma stock price crashed from 0.5900 euros per share where it traded before the agreement was announced to as low as 0.2650. This is the lowest that Roma’s shares traded since 2013. 

The price action has managed to crawl back above 0.30 in the meantime, approaching a key resistance line at 0.3260. A failure to get back above this level is likely to cause another rotation lower as the sellers eye a move to 0.25. 

AS Roma share price trades almost 40% lower in August. 

A.S. Roma stock price collapsed more than 50% this week after the U.S. billionaire Dan Friedkin agreed to take over the club at a price five times lower than that market price. As a result, the Roma stock price dipped below 0.30 to hit the lowest levels recorded since 2013.

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