S&P 500 2,441.20 17.28
Gold$1,224.80 $5.30
Nasdaq 6,253.81 61.92
Crude Oil $60,490.00      $-1570.00
Market Update

Europe Earnings: Celesio, Greggs, Henry Boot, Novartis, Royal Mail

Author: Nigel Thomas
Last Update: 11:32 AM ET January 24 2014

3:40 PM Frankfurt – McKesson agreed to acquire Celesio after a deal revision. Greggs said total sales in the third quarter grew 3.6%. Henry Boot expects revenues for the year were about £150 million. Royal Mail group comparable sales rose 2%.

In London trading, FTSE 100 index slipped 1% or 70.82 to 6,702.46 and in Frankfurt the DAX index declined 1.7% or 163.64 to 9,467.40.

In Paris, CAC 40 index dropped 1.6% or 68.64 to 4,212.32.

Celesio AG climbed 4.1% to €25 after the Germany-based pharmaceutical distribution said U.S.-based McKesson Corporation consummated the takeover deal after it revised its offer.

McKesson agreed to acquire Franz Haniel & Cie GmbH’s holding, a majority owner in Celesio for €23.50 a share same as its previous offer. The company plans to pay a portion of the offer with cash and the balance with a bridge loan.

McKesson also acquired convertible bonds of Celesio from Elliott Management that increased its stake to 75%.

McKesson offered on Oct 24 to acquire 50.01% stake controlled by Haniel for 23 euros and later revised on Jan 9 to 23.50 a share.

Elliot Management built up a stake in the company through its convertible bond offering and demanded higher price for the company.

Greggs Plc gained 0.4% to 508.85 pence after the U.K.-based bakery chain said total sales in the third quarter increased 3.6% but comparable sales fell 0.5%.

Henry Boot Plc rose 0.2% to 227.50 pence after the U.K.-based construction company said revenues for the year ending in December were approximately £150 million and estimated group pre-tax profit to increase larger-than-expected 10%.

Novartis AG slipped 1.4% to 72.65 francs after the Switzerland-based healthcare solution provider’s offer to replenish its products suffered setback from European advisory panel for its Serelaxin treatment for acute heart failure.

Royal Mail Plc slid 1.9% to 572.50 pence after the U.K.-based postal and delivery service provider said comparable sales for the nine-month period ending in September grew 2%. Parcel deliveries accounted for 51%.

Royal Mail said revenue from UK parcel delivery in the period jumped 8% and volumes were flat. UK comparable letter revenues fell 3%.

Royal Mail was privatized in October 2013.

Ziggo NV fell 0.9% to €33.28 after the Netherlands-based cable operator said earnings forecast for 2014 was unchanged and revenues are expected to grow in-line with market expectations.

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