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Market Update

Philips, Electrical Geodesics in 1.9 B Deal; Netherlands Lowers ABN Stake

Author: Sarla Buch
Last Update: 12:37 PM ET June 28 2017

4:00 PM Frankfurt Dutch government lowered ABN AMRO stake by 7%. Bunzl forecasted revenues in the second-half to jump 7%. Dixons Carphone profit surged. Legrand plans to buy the Milestone AV Tech for $950 million. Stagecoach net soared. Philips in 1.9 billion deal with Electrical Geodesics.

In London trading, FTSE 100 index fell 11.37 or 0.2% to 7,422.99 and in Frankfurt the DAX index slid 15.56 to 12,655.46.

In Paris, CAC 40 index decreased 10.44 or 0.2% to 5,248.14.

ABN AMRO Group NV slumped 2.1% to 22.75 after NL Financial Investments agreed to sell 65 million depositary receipts in the financial services provider to reduce Dutch government stake by 7% to 63% for a price of 22.75 per receipt or total of $1.7 billion.

The Dutch government plans to sell-off its holding gradually.

Bunzl Plc jumped 2.9% to 2,377 pence after the U.K.-based diversified trading and distribution services provider forecasted revenues in the second-half ending in June to jump 7% on improved underlying growth of 3% to 4% and similar impact from acquisitions.

Bunzl said so far this year, it had acquired eight businesses worth about 290 million, adding aggregate annualized revenue of 370 million.

Dixons Carphone Plc slipped 1.5% to 291.50 pence after the U.K.-based consumer electronics retailer reported revenues in the year ending in April soared 9% from a year ago to 10.6 billion.

Net profit in the year surged 83% from a year ago to 295 million from 161 million and diluted earnings per share jumped to 25.2 pence from 15.1 pence.

The retailer said pre-tax profit soared 37.5% to 418 million after reduction in non-headline costs and comparable sales in the year advanced 4%.

Legrand SA jumped 2.2% to 63.73 after the France-based industrial monitoring and controlling system maker plans to buy the U.S.-based privately held audiovisual and display equipment maker Milestone AV Technologies LLC for about $950 million.

Stagecoach Group Plc plunged 6.8% to 189.90 pence after the U.K.-based bus and rail operator said revenues in the year ending in April rose 1.8% from a year ago to 3.9 billion.

Net profit in the year plunged 81.7% from a year ago to 18.1 million from 99 million and diluted earnings per share declined to 5.5 pence from 17 pence.

The calculation of onerous contract provision takes the account of the parent company''s 165 million loan commitment to Virgin Trains of which 57.5 million was loaned on April 29.

However, the rail operator estimated Virgin Trains East Coast to incur losses under the current contract and recorded pre-tax charge of 84.1 million and booked impairment of 44.8 million on intangible assets associated with the right to operate the franchise.

Koninklijke Philips N.V dropped 1% to 32.21 after the Netherland-based medical devices maker agreed to acquire the U.S.-based Electrical Geodesics Inc for $38.50 per share in cash.

Total value of the transaction is 1.9 billion or $2.15 billion, including debt and the deal is expected to close in the third-quarter of 2017.

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