The Link Administration Holdings Ltd (ASX: LNK) share price has been battered this week, tumbling 20.8% since last Friday's close.
Some 10% of that fall occurred yesterday after Australia's competition watchdog raised a red flag over the proposed acquisition of Link, and the company announced it's being taken to the English High Court.
Fortunately, the market appears reassured by the company's confidence in its financial year 2022 guidance, outlined today.
At the time of writing, the Link share price is $3.34, 0.3% lower than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 2.54%. Meanwhile, the company's home sector – the S&P/ASX 200 Information Technology Index (ASX: XIJ) – is recording a 4.09% dip, with Link coming in as its top performer.
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What's going on with Link's stock on Friday?
The battered and bruised Link share price is doing better than most on Friday amid the broader market's stumble.
The ASX 200 is struggling today after Wall Street plunged overnight. The S&P 500 Index (SP: .INX) suffered a 3.25% fall in Thursday's session while the Nasdaq Composite (NASDAQ: .IXIC) tumbled more than 4%.
But the Link share price is outperforming following yesterday's 10.43% drop. Its about-face comes after the company released an announcement to the ASX this morning.
"Following elevated trading activity in shares of Link … on the ASX on 16 June 2022, Link Group affirms its [financial year 2022] guidance," it told the market.
"Revenue is expected to increase by a low single-digit percentage and operating [earnings before interest and tax] is expected to be at least 5% higher relative to [financial year 2021]."
It comes after the Australian Competition and Consumer Commission (ACCC) flagged "significant preliminary competition concerns" regarding the proposed acquisition of Link by Dye & Durham yesterday.
The company noted the watchdog's view was still preliminary and reconfirmed its recommendation of the takeover plan.
Additionally, Link disclosed legal proceedings are being brought against it in the English High Court on Thursday.
The claim relates to its subsidiary's role as authorised corporate director of the LF Equity Income Fund. The company has vowed to "vigorously defend" the claims.
Link share price snapshot
It likely goes without saying that 2022 has been rough on the Link share price.
The stock has slumped nearly 40% since the start of the year. It's also trading around 32% lower than it was this time last year.
