4:00 PM Frankfurt – Catlin revenues climbed but net declined. KPN received takeover offer from América Móvil for €7.2 billion. Nestle net profit increased 3.7% to 5.12 billion francs. Tesco signed merger agreement with China Resources Enterprise.
In London trading, FTSE 100 index gained 0.6% or 37.05 to 6,567 and in Frankfurt the DAX index rose 0.1% or 11.37 to 8,330.
In Paris, CAC 40 index edged up 0.1% or 5.43 to 4,070.
Catlin Group Limited
slipped 1.5% to 482 pence after the Bermuda based insurer reported revenue in the first-half ending in June climbed 9.6% to $3.30 billion from $3.01 billion. Net income for the period declined 35.9% to $118 million compared to $184 million and diluted earnings dropped 32 cents from 51 cents a year ago.
GDF Suez SA
rose 0.3% to €2.31 after the France based natural gas and electricity supplier agreed to acquire Balfour Beatty’s UK Facilities Management business – Balfour Beatty Workplace for the enterprise value of £190 million or €220 million. GDF did not disclose the offer price.
The company after the merger is expected to generate annual revenues of nearly £800 million or €930 million. The deal is expected to be completed in the fourth quarter of 2013.
Koninklijke KPN NV
surged 15.7% to €2.31 after the Netherlands based mobile company received takeover offer from Latin American phone operator América Móvil S.A.B. de C.V. to buy remaining stake of 70% that it did not already own for €7.2 billion in cash at a price of €2.40 per KPN share.
America Movil, owned by Mexican billionaire Carlos Slim who currently owns 29.8% stake in the company.
KPN expects to convene an extraordinary general meeting for the sale of E-Plus to Telefónica Deutschland in the coming weeks.
slipped 1.7% to 62.25 francs after the Switzerland based food and beverage maker reported sales in the first-half jumped 5.3% to 45.2 billion francs from 42.9 billion francs a year earlier.
Net profit for the period increased 3.7% to 5.12 billion francs compared to 4.94 billion francs and diluted earnings per share grew 1.60 francs from 1.54 francs a year earlier.
Trading operating profit for the period climbed 6.8% to 6.8 billion francs.
Nestle waters segment sales rose 2.2% to 3.7 billion francs and sales from Nestle nutrition segment jumped 6.5% to 5 billion francs. Sales growth from other businesses soared 5% to 6 billion francs.
gained 0.9% to 372.50 pence after the UK based food retailer and China Resources Enterprise, Limited today signed a Memorandum of Understanding and are in talks to merge their Chinese retail operations to multi-format retailer in China.
Tesco said the proposed joint venture will create a business of £10 billion in which CRE and Tesco expects profit to split 80% and 20% respectively.
China Resources Enterprise Limited operates 2,986 stores across China and Hong Kong.
In last April, after two decades Tesco reported its first drop in net profit and wrote-off $3.5 billion from its global operations.
William Hill Plc
slid 0.8% to 442.90 pence after the UK based sports betting group agreed to acquire Australian online betting company Tom Waterhouse NT for $100 million including debt.
The son of trainer Gai Waterhouse and bookie Robbie Waterhouse wish to sell only 50% of the business for $100 million.