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Market Update

Hermes, LVMH Settle 4-year Dispute; United Internet to Buy Versatel

Author: Nigel Thomas
Last Update: 11:47 AM ET September 03 2014

4:00 PM Frankfurt Ashtead Group profit surged 23% to 75 million. Hermes and LVMH signed an agreement to settle four-year dispute that will bar LVMH from taking additional stake in Hermes. Metro plans to sell its 9% stake in U.K.-based Booker Group. United Internet agreed to acquire remaining stake in Versatel for 586 million.

In London trading, FTSE 100 index gained 0.9% or 60.95 to 6,890.12 and in Frankfurt the DAX index climbed 1.4% or 129.77 to 9,636.79.

In Paris, CAC 40 index jumped 1.1% or 48.12 to 4,426.45.

Ashtead Group Plc climbed 3.3% to 1,019.10 pence after the U.K.-based investment company reported revenue in the first-quarter ending in July soared 11.5% to 457.9 million from 410.5 million a year ago period.

Profit in the quarter surged 23% from a year ago to 74.7 million compared to 60.7 million and diluted earnings per share rose to 12.3 pence from 12 pence.

Hermes International SCA declined 4.8% to 250.18 after the France-based luxury-goods maker signed an agreement with LVMH Moet Hennessy Louis Vuitton SA to settle the four-year dispute that worth about 5.7 billion or $7.5 billion.

Under the terms, LVMH or its holding companies will not acquire shares of Hermes in the next five years.

According to the terms, the shareholders of LVMH will get one share in Hermes for every 21 shares of LVMH.

Metro AG surged 3.2% to 27.60 after the Germany-based department store operator plans to sell 156.62 million ordinary shares or 9% stake in U.K.-based food wholesaler Booker Group Plc.

Shares of Booker Group Plc plunged 7.2% to 125.70 pence.

Perform Group Ltd rose 0.2% to 258.50 pence after the U.K.-based digital media company requested investors to reject an approach of Len Blavatnik, major shareholder to take the company private. The company said 700 million or $1.15 billion offer undervalues the company.

United Internet AG jumped 2.5% to 33.70 after the Germany-based internet service provider agreed to acquire remaining stake of 74.9% of a cable company Versatel AG for 586 million or $769.4 million in cash from the U.S.-based private equity firm Kohlberg Kravis Roberts & Co. L.P.

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