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Market Update

Metro in 2.8 B Deal with Hudson's Bay, Dragon Oil Jumps on 3.7 B Offer

Author: Nigel Thomas
Last Update: 11:23 AM ET June 15 2015

4:00 PM Frankfurt Metro agreed to sell its department store chain to Canada-based Hudson''s Bay for 2.8 billion. Dragon Oil received increased takeover offer for 3.7 billion from ENOC. Deutsche Annington agreed to acquire domestic rival Suedewo for 1.9 billion. Hennes & Mauritz sales climbed 21%.

In London trading, FTSE 100 index slumped 0.9% or 59.82 to 6,727.43 and in Frankfurt the DAX index declined 1.8% or 201.47 to 10,994.22.

In Paris, CAC 40 index dropped 1.7% or 84.52 to 4,820.67.

Dragon Oil Plc surged 8.4% to 726.50 pence after the United Arab Emirates-based oil and gas explorer said Dubai-based Emirates National Oil Co increased its takeover offer of 7.50 a share in cash for remaining stake in the company.

This represents a premium of about 47.2% to the closing price of 5.09 per Dragon Oil share as on March 13.

The offer valued the company at 3.7 billion or 5.1 billion or $5.75 billion.

Deutsche Annington Immobilien SE declined 5.9% to 26.12 after the Germany-based residential properties developer agreed to acquire domestic rival Suedewo for 1.9 billion or $2.13 billion.

The company plans to conduct a capital increase with subscription rights from authorized capital of 2.25 billion for acquisition.

The deal is expected to close in the next month.

H & M Hennes & Mauritz AB slipped 0.9% to 326.70 kronor after the Sweden-based apparel retailer said group sales including value added tax in second-quarter ending in May climbed 21% to 45.87 billion kronor from 37.83 billion kronor in a year ago period.

The retailer said interim result will release on June 25.

Metro AG declined 5% to 29.45 Germany-based department store operator agreed to sell its department store chain Galeria Kaufhof GmbH to Canada-based Hudson''s Bay Co. in a deal valued at 2.83 billion or $3.16 billion including debt and to expand beyond North America and to introduce Saks-brand in Europe.

The retailer said the deal will significantly reduce the net debt by about 2.7 billion and cash inflow of about 1.6 billion.

The transaction is expected to be closed by end of September 2015.

Majestic Wine Plc dropped 3.5% to 424.50 pence after the wines, beers and spirits maker said total sales in the year ending in March jumped 2.3% to 284.5 million from 278.2 million in a year ago period.

Net profit in the year plunged 23.4% from a year ago to 13.5 million compared to 17.6 million and diluted earnings per share decreased to 20.4 pence from 26.6 pence in the same period a year ago.

Veolia Environnement VE SA slumped 3.3% to 17.89 after the France-based water treatment services provider said its Ireland-based subsidiary secured contacts for 15-years worth 450 million to operate domestic biomass power plant in Killala, Co. from Mayo Renewable Power.

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