European Indexes Lower, Avio Sells Aviation Business

Arthi Gupta
21 Dec, 2012
New York City

The European indexes declined. General Electric agreed to buy the aviation business of Italy-based Avio for $4.3 billion. ING agreed to sell Malaysian investment management business to Kenanga.

[R]2:30 PM Frankfurt – The European indexes declined. General Electric agreed to buy the aviation business of Italy-based Avio for $4.3 billion. ING agreed to sell Malaysian investment management business to Kenanga.[/R]

The European indexes edged lower on the uncertainty prevailing in the U.S. budget talks.

The U.S. House Speaker John Boehner’s proposal to raise taxes on people earning more than $1 million met with dissent from his own party members.

A private survey showed that Germany''s consumer sentiment is set to decline in January. The overall indicator is forecasting 5.6 points for January 2013 following a revised value of 5.8 points for December.

In Paris trading, the CAC-40 Index declined 13.61 or 0.4% to 3,653.12 and in Frankfurt the DAX Index edged lower 44.63 or 0.6% to 7,627.82.

For the week, the CAC-40 Index rose 0.3% and the DAX Index climbed 0.4%.

The yields on Spain’s benchmark were at 5.264%. Italian 10-year yields were at 4.483%.

GE to Acquire Avio Aviation Business

General Electric Co. agreed to purchase the aviation business of Avio S.p.A., the Italy-based manufacturer of aviation propulsion components and systems for civil and military aircraft, for $4.3 billion or €3.3 billion.

The purchase price represents a multiple of 8.5 based on 2012 estimated earnings before interest, taxes, depreciation and amortization.

ING to Sell Malaysian Investment Management Business

ING agreed to sell its 70%-stake in ING Funds Berhad, investment management business in Malaysia, to Kenanga Investors Berhad, a wholly owned subsidiary of K & N Kenanga Holdings Berhad.

ING''s joint venture partner Tab Inter-Asia Services Sdn Berhad has also agreed to sell its 30% stake to Kenanga Investors.

Cognizant to Acquire Six Companies of the C1 Group

Cognizant agreed to acquire six companies of the C1 Group, an independent consulting and IT services firm based in Germany. The terms of the transaction were not disclosed.