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Market Update

Volkswagen Sets Aside 6.5 B, Stagecoach Sells 400 M Bonds


Author: Nigel Thomas
ticker.com
Last Update: 11:56 AM ET September 22 2015

4:00 PM Frankfurt AA net swung to a loss of 51 million. Clinigen profit tumbled 68% but revenues soared 45%. Meggitt agreed to acquire the composites unit of EDAC. Stagecoach launched 400 million 10-year bonds. Volkswagen plans to set aside 6.5 billion to cover the ongoing investigations.

In London trading, FTSE 100 index dropped 146.20 or 2.4% to 5,962.48 and in Frankfurt the DAX index slumped 323.66 or 3.3% to 9,623.

In Paris, CAC 40 index declined 154.70 or 3.4% to 4,430.80.

AA Plc plunged 8.4% to 305.30 pence after the U.K.-based roadside assistance service provider reported group revenues in the first-half ending in July slipped 1.4% from a year ago to 484.6 million.

Net in the period swung to a loss from a year ago to 51.1 million compared to profit of 27.5 million and diluted loss per share swung to 8.8 pence from diluted earnings per share of 5.7 pence.

The company said roadside assistance revenue in the period jumped 2.1% to 359.1 million while operating profit declined 5.9% to 199.2 million.

Clinigen Group Plc slumped 2% to 738 pence after the U.K.-based bio therapeutic drugs maker stated revenues in the year ending in June soared 45% from a year ago to 184.4 million.

Net profit in the year tumbled 67.5% from a year ago to 5.3 million compared to 16.2 million and diluted earnings per share dropped to 5.9 pence form 19 pence.

Separately, today the company agreed to acquire Singapore-based rival Link Healthcare Private Ltd on a cash-free and debt-free basis for 44.5 million with additional consideration of up to 55.5 million based on milestones up to fiscal 2017.

Meggitt Plc decreased 1.6% to 466.63 pence after the U.K.-based engineering company agreed to acquire the composites unit of EDAC, the aerospace components maker from Greenbriar Equity Group and other associated sellers for $340 million in cash.

The transaction is expected to close by the end of this year.

Regenersis Plc gained 1.5% to 145.20 pence after the U.K.-based after-sales services provider said revenues in the year ending in June jumped 2.6% from a year ago to 202.6 million.

Net profit in the year surged 81.2% from a year ago to 5.40 million compared to 2.98 million and diluted earnings per share increased to 6.97 pence form 5.41 pence.

Separately, the company agreed to acquire the U.S.-based privately held data erasure software provider Tabernus LLC for $12 million.

Stagecoach Group Plc slid 0.9% to 337.40 pence after the U.K.-based public transport company successfully launched 400 million 10-year bonds with an annual coupon of 4%.

The company plans to use proceeds for general corporate purposes and to repay the existing debt.

Volkswagen AG plummeted 19.5% to 106.55 after the Germany-based carmaker said its plans to set aside a provision of 6.5 billion to cover the ongoing investigations and the charge will be recognized in the third-quarter of the current fiscal year.

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