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Market Update

Amec Foster Wheeler and Bovis Surge on Bid, Helvetia Net Jumps

Author: Sarla Buch
Last Update: 12:31 PM ET March 13 2017

4:00 PM Frankfurt – Aryzta net income in the year swung to a loss. Amec Foster Wheeler agreed to be acquired by domestic rival John Wood Group for £2.2 billion and the company also plans to launch a rights issue of approx £500 million. Helvetia net soared 22%.

In London trading, FTSE 100 index jumped 27.62 or 0.4% to 7,370.44 and in Frankfurt the DAX index gained 23.16 or 0.2% to 11,986.40.

In Paris, CAC 40 index increased 10.19 or 0.2% to 5,003.51.

Aryzta AG declined 6.4% to 30.95 Swiss francs after Switzerland-based baking products maker reported revenues in the second-half ending in January dropped 2.8% from a year ago to €1.9 billion.

Net income in the period swung to a loss of €139.4 million from profit of €26.9 million and diluted loss per share swung to €1.77 from diluted earnings per share of €0.98.

The specialty baking products maker said announced to write down as of January 31 to €2.3 billion related to certain distribution, manufacturing and administration assets from €7.4 billion in a year ago period.

Amec Foster Wheeler Plc surged 13.5% to 555.50 pence after the U.K.-based oil and gas services provider said revenues in the year ending in December were flat from a year ago at £5.4 billion and profit plunged 15% to £318 million.

As of 2016 December end, net debt of about £1 billion but orders declined 6.5% to £5.8 billion from a year ago period.

The board has approved the launch of a rights issue of approx £500 million on March 21 to implement the strategy for financial and operational flexibility.

Separately, today the oil and gas services provider agreed to be acquired by John Wood Group Plc for about £2.2 billion or $2.7 billion.

In a separate press release, Amec Foster announced today that it had secured a new contract to provide long-term support to EDF Energy Nuclear Generation worth about £125 million.

“The combination creates an asset-light, largely reimbursable business of greater scale and enhanced capability,” said chairman and chief executive officer Ian Marchant.

Bovis Homes Group Plc soared 10.7% to 916.53 pence after the U.K.-based home-builder rejected two initial offers from Redrow Plc and Galliford Try Plc, but the homebuilder said it would continue in talks with Galliford.

Galliford confirmed that it is in talks with Bovis and made offer of 886 pence per share valuing the company at £1.2 billion.

Redrow approached Bovis on February 27 with a buyout proposal for 814 pence in stock and cash deal.

However, on March 6, “Bovis board informed that the proposal did not merit further discussion,” Redrow said in a statement.

Belimo Holding AG rose 0.1% to 3,314 Swiss francs after Switzerland-based heating, ventilation and air conditioning product maker stated net sales in the year jumped 8.2% from a year ago to 533.7 million francs.

Net income in the year surged 24.1% from a year ago to 69.8 million francs from 56.2 million francs and diluted earnings per share advanced to 113.51 francs from 91.52 francs.

Helvetia Holding AG slumped 2.2% to 558 Swiss francs after Switzerland-based insurance service provider said gross premiums written in the year ending in December advanced 3.7% from a year ago to 8.4 billion francs.

Net profit in the year soared 22.4% from a year ago to 376.6 million francs from 307.8 million and diluted earnings per share jumped to 36.07 francs from 28.98 francs.

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