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Market Update

Italy Banks Leand European Advance, Vivendi to Acquire Mediaset Pay-TV Unit

Author: Lucy Stoeva
Last Update: 4:48 PM ET April 11 2016

4:00 PM Frankfurt, Germany - European market indexes closed higher Monday after mining stocks and Italy banks extended gains. Vivendi agreed to acquire the pay-TV business of MediaSet. Swiss airline catering Gategroup is being acquired by a China based company. Telenor may sell its unit in India.

European market indexes closed higher on Monday after resource stocks and Italian banks extended recent gains.

Banks in Milan rose for the second day in a row in anticipation of a meeting on Tuesday between the central bank and Treasury officials about the troubled banking industry.

Investors expect a government-backed fund to help the banks deal with non-performing loans and improve capital standing.

Banca Monte dei Paschi di Siena surged 9.8%, Banco Popolare Societa Cooperativa added 10% and Unione di Banche Italiane advanced 7%.

Mining stocks also charged ahead after the latest inflation data from China fueled expectations of more stimulus from the Chinese government.

Anglo American jumped 6.9%, Glencore added 3.4%, Rio Tinto advanced 2.2%, and Antofagasta gained 1.3%.

The U.K. pound surged 0.8% against the dollar to $1.4238 and 0.7% against the euro to 1.2480.

In London, the FTSE 100 index inched down 4.29 to 6,200.12, 100 after fluctuating between small gains and losses.

In Frankfurt, the DAX index gained 60.73, or 0.6%, to 9,682.99, while in Paris, the CAC 40 index added 9.51, or 0.2%, to 4,312.63.

In Milan, the FTSE MIB index surged 218.04, or 1.25%, to 17,722.66, outperforming the other European markets.

Gategroup Holdings AG soared 20.2% to 53 Swiss francs after the airline catering company received an acquisition offer from the Chinese conglomerate HNA Group.

HNA Group Co. agreed to buy Gategroup Holding for 1.4 billion francs as part of its global expansion.

The deal values the Swiss company 20% higher than its current market price, because investors will receive a previously declared dividend in addition to 53 francs per share.

Mediaset SpA jumped 2.6% to 3.59 after Vivendi, the French media group, agreed to acquire the pay-TV business of the Italian broadcaster.

According to the agreement, Vivendi agreed to acquire 89% stake in Mediaset Premium. The remaining 11% is owned by Spanish Telefonica.

The deal values Mediaset Premium at 800 million.

Standard Chartered Plc gained 1% to 447.95 pence on media reports that the bank is considering the sale of $4.4 billion Asian assets to improve its balance sheet.
SAP SE dropped 0.1% to 67.42 after the software company warned that its first-quarter results would be weaker than expected due to slower sales of software licenses to corporations in Brazil and the U.S.

Telenor jumped 3.2% to 134.2 Norwegian kroner on the news that the Oslo-based telecom was trying to sell its operations in India.

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