eDreams becomes an eNightmare as its shares are suspended following Iberia ticket controversy

 
Emma Haslett
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eDreams founder Javier Perez-Tenessa speaks at a press conference following its IPO in April (Source: Getty)

Shares in travel website eDreams Odigeo have been suspended from trading by a Spanish regulator after they plummeted 59.1 per cent in a single day.

The company, which is based in Barcelona, listed just six months ago at €10.25, but plummeted to €1.023 today before the regulator called a halt to trading.

The fall came after Iberia Airlines, part of International Airlines Group, which also owns British Airways, said it would stop selling its tickets through the site. The airline alleged that eDreams had breached European law by "not fulfilling its obligations to transparently report total ticket prices to clients from the start of the booking process", according to Bloomberg.

The website has become something of a nightmare for investors almost since its listing in April: shares fell rapidly after it IPOd in April. In June, it said that because of changes to the way Google's algorithm worked, its 2015 earnings before interest, tax, depreciation and amortisation would be "difficult to discern".

eDreams was advised on its IPO by JPMorgan and Deutsche Bank, as well as London-based investment bank STJ advisors, which also advised Card Factory and Saga on their recent listing.

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