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Market Update

Accor Mulls Air France KLM Stake, Rickemont Sells Lancel

Author: Sarla Buch
Last Update: 12:23 PM EDT June 04 2018

4:00 PM Frankfurt – Accor plans to acquire 14.3% stake in the Air France KLM. CYBG revised its £1.6 billion offer to buy Virgin Money. Richemont completed the sale of its wholly-owned subsidiary for leather goods. DS Smith agreed to acquire Spain-based rival Europac for £1.4 billion.

In London trading, FTSE 100 index rose 26.89 or 0.4% to 7,705.09 and in Frankfurt the DAX index soared 113.79 or 0.9% to 12,715.63.

In Paris, CAC 40 index jumped 73.23 or 1.4% to 5,472.54.

Accor SA soared 6.9% to €7.47 after French newspapers Le Figaro and Les Echos reported France-based hotels, resorts and hospitality services provider plans to acquire 14.3% stake in the domestic airline services provider Air France KLM SA.

In a statement, Accor said “AccorHotels confirms its reflections on the matter, being at very early stage of assessing the feasibility and potential terms and conditions which will be discussed with Air France-KLM in due time.”

Air France KLM SA stock soared 7% to €7.47.

CYBG Plc gained 1.7% to 296.80 pence after the U.K.-based banking services provider revised its £1.6 billion offer to acquire the entire stake in the domestic rival Virgin Money Holdings Plc in a exchange ratio of 1.2125 new CYBG shares for each share of Virgin Money, an increase of 7% on its original proposal.

Under the terms, shareholders of Virgin Money will get 1.2125 new shares in CYBG and will own approx 38% from around 36.5%.

Compagnie Financière Richemont SA increased 0.8% to 92.10 after Switzerland-based luxury goods maker today announced that it had completed the sale of its wholly-owned subsidiary, Lancel, a luxury leather goods business to its rival Piquadro S.p.A on June 2.

DS Smith Plc advanced 2.2% to 574.66 pence after the U.K.-based consumer goods packaging materials maker agreed to acquire Spain-based rival Papeles y Cartones de Europa or “Europac” for £1.4 billion or €1.67 billion.

“It’s an exceptional opportunity to enhance our customer offer in a key packaging growth region,” said chief executive officer Miles Roberts.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc