Europe Earnings: Algeta, Daimler, Essar Energy, Saab, Serco

Nigel Thomas
19 Dec, 2013
New York City

Algeta agreed to be acquired by Bayer $2.9 billion. Daimler Benz agreed to acquire 5% stake in Aston Martin. Essar Energy plans to reduce capital expenditure. Saab won contract to supply 36 jet fighters in a deal worth $4.5 billion.

[R]3:40 PM Frankfurt – Algeta agreed to be acquired by Bayer $2.9 billion. Daimler Benz agreed to acquire 5% stake in Aston Martin. Essar Energy plans to reduce capital expenditure. Saab won contract to supply 36 jet fighters in a deal worth $4.5 billion.[/R]

In London trading, FTSE 100 index jumped 0.9% or 59.96 to 6,552 and in Frankfurt the DAX index climbed 1.2% or 106.91 to 9,289.

In Paris, CAC 40 index advanced 1.2% or 47.98 to 4,157.

Algeta ASA gained 1.6% to 358.30 kronor after the Norwegian cancer drug maker said that it had agreed to be acquire by the Germany-based Bayer AG health products maker in a deal valued at about $2.9 billion in cash.

Bayer revised its offer from the initial $2.4 billion or 336 kronor per share, 48% premium to its stock price last month.

Daimler AG jumped 2.2% to €60.92 after the Germany-based automaker said it plans to acquire 5% stake in Aston Martin Lagonda Ltd. for a significant technical partnership.

Daimler’s 5% non-voting stake in Aston without is cash consideration and will culminate in several steps based on the progress of the technical partnership.

The Daimler subsidiary Mercedes-Benz do Brazil secured order to supply total 607 Mercedes-Benz trucks to government and the private sector and the company will start immediate deliveries in Brazil.

The sale represents a 46% increase in sale from the previous year.

Essar Energy Plc increased 1.8% to 72.99 pence after the India-focused energy company plans to reduce capital expenditure by focusing only on essential maintenance and project expenditure and reiterated its positive outlook for the business.

Saab AB surged 32.9% to 176.80 kronor and Sweden-based military defense contractor won a contract to supply 36 jet fighters to Brazil. The deal is worth $4.5 billion through 2023.

Saab received an order from Swedish Defence Materiel Administration for the integration of the weapon system Meteor on Gripen E. for 186 million kronor.

Serco Group Plc soared 5% to 471.30 pence after the U.K.-based government contractor agreed to to return £68.5 million to the government in the wake of the electronic tagging scandal. The company said in a separate statement that free cash flow for 2013 is anticipated to be lower than last year.

Vodafone Group Plc rose 1.7% to 231.75 pence after the U.K.-based mobile company said received a final tax demand of approx $604 million from Indian regulators against its tax disputes since it bought Hutchison Whampoa mobile business in 2007.