Europe Earnings: Premier Foods, Ryanair, Telef

Nigel Thomas
23 Jul, 2013
New York City

Bentley plans to invest

[R]3:20 PM Frankfurt – Bentley plans to invest £800 million in its British operations. Ryanair agree to sell 29% stake of Aer Lingus. Telefónica agreed to buy E-Plus for €5 billion in cash. Vivendi sell 53% stake in Maroc Telecom for €4.2 billion in cash.[/R]

In London trading, FTSE 100 index rose 0.3% or 16.86 to 6,640 and in Frankfurt the DAX index edged up 0.1% or 12.13 to 8,343.

In Paris, CAC 40 index added 0.08% or 3.03 to 3,943.

Bentley Motors, Inc, the luxury automaker today confirmed that it will invest £800 million into its British unit to build first-ever SUV model to begin sale in 2016 and is expected to create more than 1,000 jobs in the UK.

Premier Foods Plc surged 6.9% to 90.91 pence after the UK based food retailer said sales in the first-half slid 0.9% to £621.2 million from £626.8 million. Grocery brand sales jumped 4% to £253.2 million from £243.6 million. Trading profit for the period surged 50.2% to £47.4 million compared to £31.6 million.

Ryanair Holdings Plc declined 3.2% to €16.22 after the Ireland based low-cost airliner agree to sell its 6½ year old 29% stake in rival Aer Lingus Group Plc to any other European airline. The company is in talk with UK Competition Commission to take control of the airline.

Telefónica S.A., the Spain based telecom operator agreed to buy KPN’s German mobile phone subsidiary, E-Plus for €5 billion in cash and a stake in the resulting company of 17.6%. With this operation, the company reiterates to place net financial debt below €47 billion by the end of 2013.

The transaction is expected to be closed during the first half of 2014.

Tullow Oil Plc declined 6% to 1,048 pence after the UK based oil and gas explorer reported the company forsakes its exploration well in Mozambique and in French Guiana.

In The Cachalote-1, the well of Mozambique encountered no reservoir quality and the well has been plugged and abandoned.

Vivendi SA climbed 3.3% to €16.22 after the France based media and telecom operator is in talk with Etisalat to sell its 53% stake in Maroc Telecom for €4.2 billion in cash including dividend of €310 million for 2012.

Etisalat’s offer values the controlling stake at 92.6 Moroccan dirhams per share.