Why Mayne Pharma, Metal Powder Works, Smartgroup, and Super Retail shares are dropping today

These shares are starting the week in the red. But why?

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decline. At the time of writing, the benchmark index is down 0.35% to 8,843.3 points.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne Pharma share price is down 13% to $4.58. This morning, this pharmaceuticals company released an update on its proposed takeover by Cosette Pharmaceuticals. It highlights that there are reports that the South Australian government would look to block the sale of the business if its suitor were to close its Salisbury operations. Given that Cosette has been looking for ways to get out of the deal, investors appear to believe this could be the nail on the coffin for the takeover. The company said: "Mayne Pharma is aware that, since Cosette's purported termination of the Scheme, Cosette has had some correspondence with FIRB in respect of its intentions for the Mayne Pharma business (including possible intentions to either close or sell the Salisbury site) following implementation of the Scheme, should Cosette's attempts to terminate, or otherwise get out of its obligations under, the SID, fail."

Metal Powder Works Ltd (ASX: MPW)

The Metal Powder Works share price is down over 4% to $3.53. This morning, this advanced metal powder production technology developer announced that it has received firm commitments from sophisticated and professional investors to raise $15 million through a share placement priced at $3.50 per share. Its CEO, John Barnes, said: "The additional A$15 million in funding provides us with the balance sheet strength to accelerate our growth strategy, scale production, grow market share, broaden our product offering while maintaining the financial strength to execute at speed."

Smartgroup Corporation Ltd (ASX: SIQ)

The Smartgroup share price is down 5% to $8.63. This has been driven by the salary packaging and fleet management's company's shares going ex-dividend this morning for its fully franked interim dividend of 19.5 cents per share. This will be paid to eligible shareholders later this month on 23 September.

Super Retail Group Ltd (ASX: SUL)

The Super Retail share price is down 4% to $18.09. This has also been caused by the retail conglomerate's shares going ex-dividend this morning. Last month, the BCF, Macpac, Rebel, and Supercheap Auto owner released its full year results and declared a fully franked final dividend of 34 cents per share and a fully franked special dividend of 30 cents per share. These will be paid to eligible shareholders next month on 16 October.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Super Retail Group. The Motley Fool Australia has positions in and has recommended Smartgroup and Super Retail Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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