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Market Update

Aixtron Takeover Blocked Again; Berkeley Net Surges 37%

Author: Sarla Buch
Last Update: 11:07 AM ET December 02 2016

4:00 PM Frankfurt – Aixtron declined after U.S. blocked the Chinese company from buying Germany-based chip equipment maker. Berkeley profit and revenues surged despite the pending sale contracts declined 20%. G4S agreed to sell its Israel unit.

In London trading, FTSE 100 index slumped 48.47 or 0.7% to 6,703.54 and in Frankfurt the DAX index decreased 70.18 or 0.7% to 10,463.58.

In Paris, CAC 40 index declined 51.83 or 1.1% to 4,508.83.

For the week, FTSE 100 index dropped 2%, the DAX index declined 2.2% and the CAC 40 index slipped 0.9%.

Aixtron SE declined 5.6% to €3.64 on reports that the U.S. President Barack Obama plans to block Chinese company from buying Germany-based chip equipment maker, raising national security risk.

Preparing to reject the proposed €670 million offer by China-based Fujian Grand Chip Investment Fund LP that marked for second time when the President Obama rejected a deal on national security grounds.

The president upholds recommendation by the Committee on Foreign Investment in the U.S. that the sale of the semiconductor-equipment supplier to China’s Grand Chip Investment GmbH should be stopped.

""We’re in intensive contact with the relevant authorities,” spokesman of Aixtron Guido Pickert said on Friday by phone.

However, in October German government withdrew the takeover approval for the China-focused Fujian Grand Chip Investment Fund LP.

""The government received previously unknown security-related information,"" and ""this led to withdraw the clearance certificate,"" Deputy Economy Minister Matthias Machnig said.

The Berkeley Group Holdings plc soared 8.2% to 2,753 pence after the U.K.-based home builder reported revenues in the first-half ending in October surged 24.1% from a year ago to £1.4 billion.

Net profit in the period jumped 36.3% from a year ago to £310.5 million compared to the £227.8 million and diluted earnings per share increased to 209.6 pence from 149.2 pence.

In the period, the reservations declined 20% compared with the same period last year, the chief executive officer Rob Perrins said. Further he added a new target for pre-tax profit of £3 billion by 2020.

G4S Plc fell 0.4% to 240.70 pence after the U.K.-based integrated security group agreed to sell its G4S Israel to FIMI Opportunity Funds for about £88 million or NIS425 million.

However, G4S will retain a presence in Israel through partnership with FIMI and Shikun & Binui.

The transaction is expected to close before the end of the first-quarter of 2017.

Laird Plc plunged 8.5% to 138.60 pence after the U.K.-based electromagnetic services provider proposed a £185 million rights issue during the first quarter of 2017 and cancelled its dividend.

Laird forecasted pre-tax operating in full-year may about £50 million.

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