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Market Update

Barclays Sells Assets; Iliad Looks to Revise T-Mobile Offer

Author: Nigel Thomas
Last Update: 11:50 AM ET September 01 2014

4:00 PM Frankfurt – Barclays agreed to sell its UAE retail banking business CaixaBank agreed to acquire Spanish operations for £800 million. Havas net climbed 7% to €62 million. Iliad revised its offer for T-Mobile Stake.

In London trading, FTSE 100 index edged down 0.07% or 4.88 to 6,814.87 and in Frankfurt the DAX index slid 0.1% or 10.35 to 9,459.82.

In Paris, CAC 40 index fell 0.2% or 8.47 to 4,372.57.

Barclays Plc slid 0.3% to 223.73 pence after the U.K.-based financial services provider completed the sale of its UAE retail banking business to Abu Dhabi Islamic Bank at an estimated pre-tax gain of £119 million.

In next two years, Barclays plans to reduce its non-core investment bank risk-weighted assets to about £50 billion and leverage exposure to around£180 billion and expects to increase capital at the group level by the end of 2016.

CaixaBank SA fell 0.4% to €4.56 after the Spain-based commercial bank agreed to acquire Spanish retail and corporate banking operations of Barclays Plc for about £800 million or $1.1 billion in cash.

After this transaction, Barclays booked after-tax loss of £400 million on the transaction that will be reported in the third-quarter and will also incur a loss of £100 million after completion of the deal.

Havas SA gained 1.1% to €6.29 after the France-based advertising and communication group reported revenue in the first-half ending in June jumped 2.7% to €867 million from €844 million a year ago period.

Net income in the period climbed 6.9% from a year ago to €62 million compared to €58 million and earnings per share was flat at €0.15 from a year earlier.

As of June, the company said net financial debt dropped at €222 million compared to net financial debt of €367 million a year ago.

Iliad SA plunged 8.2% to €153.55 after the France-based mobile company is in talk with potential buyout partners to make a new offer for Deutsche Telekom AG''s T-Mobile US, Inc.

Deutsche Telekom, the parent of T-Mobile is looking for $35 a share and Iliad is looking for potential financial partners for the revised bid.

In August, Iliad offered to acquire 56.6% in T-Mobile US and offered $15 billion in cash for $33 a share. The offer was rejected by Deutsche Telekom on August 8.

The company said revenue in the first-half ending in June climbed 10% to €2.02 billion from €1.83 billion a year ago period.

Profit in the period dropped 1.3% from a year earlier to €139.9 million compared to €141.8 million.

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