Europe Movers: France to Pay

Nigel Thomas
14 Jan, 2013
New York City

TNT Express plunged after UPS abandoned its offer for the parcel delivery company. Swatch Group gained 4% after it agreed to acquire luxury watch unit of Harry Winston. Saint Gobain gained after it received an offer for its glass division in North America.

Cap Gemini increased 3% to €35.25 after Barclays Plc lifted its view on the stock following an upgrade from Goldman Sachs on the speculation that the company will deliver better results in 2013 after India based Infosys lifted current year sales outlook last week.

Electricite de France SA soared the most in a year by 5.4% to €14.40 after French government agreed to compensate the company for its deficits resulting from its mandatory public-service investments.

The company said it will received payments in a schedule to 2018 totaling €4.9 billion.

PSA Peugeot Citroen gained 5% to €6.41 after the France’s second largest automaker said its auto financing division completed €5.3 billion loan agreements as a part of a refinancing plan.

Saint Gobain gained 2.2% and reversed earlier losses in the session after it said it received a $1.7 billion offer from Ireland based Ardagh Group for its North American business at its glass making unit Verallia.

Harry Winston Diamond Corporation ((HWD)) climbed 9.5% or $1.35 to $15.81 after the Canada based luxury watch retailer agreed to sell its luxury brand diamond jewelry and watch division to The Swatch Group Ltd. for $750 million in cash plus assumption $250 million and net debt..

Swatch Group increased 4% to Sfr512.50.

United Parcel Service, Inc. ((UPS)) increased 1.7% or $1.39 to $79.31 after the courier services provider abandoned its €5.2 billion or $6.9 billion takeover of Netherlands based express delivery company, TNT Express.

Competition authorities at the European Commission informed the two companies that its proposed asset sales did not go far enough and may harm competition and will block the merger proposal.

UPS will pay a termination fee of 200 million euros to TNT and will withdraw the offer. In March 2012, UPS has offered to purchase TNT.

Shares of TNT Express declined 49% to €4.90 in early trading Amsterdam exchange. PostNL, which controls 30% stake in TNT plunged 36% to €1.82.