Europe Earnings: EXOR, Fiat, IMI, Ophir Energy, RWE, Shell

Nigel Thomas
02 Jan, 2014
New York City

Fiat agreed to acquire remaining 41.5% stake in Chrysler for $4.35 billion. IMI sold its beverage dispense and merchandising divisions for $1.1 billion. RWE sought permission from shareholders to raise capital.

[R]3:40 PM Frankfurt – Fiat agreed to acquire remaining 41.5% stake in Chrysler for $4.35 billion. IMI sold its beverage dispense and merchandising divisions for $1.1 billion. RWE sought permission from shareholders to raise capital.[/R]

In London trading, FTSE 100 index slid 0.2% or 13.88 to 6,735 and in Frankfurt the DAX index fell 0.4% or 37.30 to 9,515.

In Paris, CAC 40 index dropped 1% or 40.37 to 4,256.

EXOR SpA climbed 5.3% to €30.42 on the report that Fiat agreed to acquire remaining stake in Chrysler. The investment company holds 30% stake Fiat SpA.

Fiat SpA surged 13.8% to €6.76 after the Italy-based carmaker agreed to acquire remaining stake of 41.46% in Chrysler Group LLC for $4.35 billion from voluntary employee beneficiary association.

VEBA will receive $3.65 billion in cash and from Chrysler and Fiat it will receive $1.9 billion and $1.75 billion respectively.

The deal is expected to close on or before Jan 20.

IMI Plc rose 0.1% to 1,526 pence after the U.K.-based engineering company said it completed the sale of its beverage dispensing and merchandising divisions on January 1 for an enterprise value of $1.1 billion and will return £620 million in cash to shareholders.

Ophir Energy Plc plunged 6.9% to 305.10 pence after the U.K.-based oil and gas explorer said its drilling operations on the Mlinzi Mbali-1 well in Tanzania failed to find commercial quantity of oil.

RWE AG slipped 1.8% to €26.12 after the Germany-based electricity and gas provider sought permission from shareholders to raise as much as 10% of capital.

Royal Dutch Shell Plc slid 0.1% to 2,160 pence after the U.K.-based oil and gas explorer completed the acquisition of Repsol''s liquefied natural gas portfolio outside North America for a cash consideration of $4.1 billion.