Europe Movers: Ace, EADS, John Wood, Next

Arthi Gupta
13 Sep, 2012
New York City

Ace agreed to acquire Fianzas Monterrey for $285 million. EADS plunged 8% on merger talks with BAE Systems. Next first-half revenue rose 4.8% to

[R]2:30 PM Frankfurt – Ace agreed to acquire Fianzas Monterrey for $285 million. EADS plunged 8% on merger talks with BAE Systems. Next first-half revenue rose 4.8% to £1,640 million and profit climbed 10.2% to £251 million.[/R]

Ace Limited rose 0.6% to $75.55 after the Swiss insurer agreed to acquire Fianzas Monterrey in Mexico from New York Life Insurance Company for approximately $285 million in cash.

European Aeronautic Defence and Space Co. plunged 8.1% to €25.73 after the airplanes and military equipment manufacturer confirmed merger talks with BAE Systems plc. EADS shareholders will control 60% and the rest will be controlled by the BAE shareholders.

Investors were lukewarm of the merger prospect and worried that governments of several countries will have to approve the merger.

The combined company would have sales of about $93 billion and employ 220,000 people worldwide compared to Boeing’s sales of $68.7 billion last year.

Home Retail Group plc slumped 4.2% to 95.20 pence after the home and general merchandise retailer reported second quarter total sales at Argos rose 1% to £867 million on comparable sales increase of 1.4%.

Total sales at Homebase declined 3.9% to £366 million with comparable sales decline of 3.7% in the quarter.

John Wood Group Plc declined 1.5% to 841 pence after the energy services provider secured a $24 million contract with NRG Energy subsidiary Petra Nova to design and construct a 75 MW gas turbine peaking facility at the W. A. Parish Generating Station.

Next plc plummeted 6.5% to 3,345 pence after the UK clothing retailer reported first-half revenue rose 4.8% to £1,640 million and profit climbed 10.2% to £251 million.