UK GDP Expands 0.8%; Danaher, Cooper to Sell Apex Tool

Arthi Gupta
10 Oct, 2012
New York City

The UK indexes traded lower but gross domestic product grew 0.8% in the three months to September. Danaher and Cooper agreed to sell Apex Tool to Bain Capital for $1.6 billion.

[R]5:30 PM London – The UK indexes traded lower but gross domestic product grew 0.8% in the three months to September. Danaher and Cooper agreed to sell Apex Tool to Bain Capital for $1.6 billion.[/R]

The UK indexes dropped on the ongoing global worries but gross domestic product grew 0.8% in the three months to September.

In London, the benchmark index FTSE 100 declined 33.54 or 0.6% to 5,776.75 and the pound edged higher to $1.6006.

UK GDP Expands

The UK''s gross domestic product grew 0.8% in the three months to September compared to 0.1% rise in the three months to August 2012, according to monthly estimates released by the National Institute of Economic and Social Research today.

This is the most robust rate of growth since the three months to July 2010.

BAE, EADS Terminate Merger Talks

BAE Systems plc and EADS decided to terminate their merger discussions. The two companies were able to hammer out commercial agreement but failed to overcome political ownership obstacles.

The companies said discussions with the relevant governments had not reached a point where both companies could fully disclose the benefits and detailed business case for this merger.

Danaher, Cooper to Sell Apex Tool Group

Danaher Corporation and Cooper Industries agreed to sell Apex Tool Group to Bain Capital for approximately $1.6 billion. Currently, Danaher and Cooper each maintain a 50% joint venture ownership interest in Apex.

Danaher expects the sale to generate after-tax net proceeds of approximately $650 million.

Gainers & Losers

Avanti Communications Group plc plunged 17.6% to 287.49 pence after the satellite operator reported fiscal year revenues and other operating income increased by 246% to £15 million.

Capita Plc, the business process outsourcing solutions provider fell 1.3% to 730.50 pence after a broker downgrade.

CRH Plc fell 2.4% to €13.84 after the building materials manufacturer terminated talks to buy an equity stake in Jaypee’s Gujarat cement business.