DFDS's shares took their largest hit Monday in two years amid the threat of US-Turkey tensions as stakeholders question the timing of acquiring ferry operator UN Ro-Ro.
The Danish ferry owner fell 8% to DKK 348 ($53.26) as a tussle between both nations risks sending Turkey into a financial meltdown, according to Bloomberg.
"The current Turkish and economic storm may knoxk over DFDS, at least in the short term," Nordnet economist Per Hansen said in a note.
DFDS finished its EUR 950M takeover of Turkey's UN Ro-Ro in June in an earlier-than-expected time frame.
The expedited deal has now increased DFDS' exposure to the troubled Turkish economy, Bloomberg reported.
DFDS chief financial officer Torben Carlsen said he expects the issue will be resolved over time, and the takeover was executed based on forecasts of long-term growth in Turkey.
"The timing is what it is," he told Bloomberg.
Nils Smedegaard-led DFDS is also heavily exposed to the UK and could be hurt if European Union talks cause a tough Brexit.
The company suspended dividends and share buybacks related to the UN Ro-Ro acquisition.
