Smaller Discounts for Europe’s Block Trades Show Investor Appeal

European shares sold in overnight block trades are being offered at smaller discounts than they once were, a long-awaited sign that investors are increasingly willing to pay top dollar for such deals.

These large stakes, mostly sold outside of market hours, are typically offered at a discount to the last traded price as an incentive for new buyers. In recent weeks, such deals have offered investors less enticing bargains — yet they’ve all been taken up.

So far this quarter, block trades that raised at least $150 million have priced on average 4.7% lower than the close, which is a ...