Siemens, Mitsubishi Lifted Alstom Offer, Shire Rejected $46.5 B Offer

Nigel Thomas
20 Jun, 2014
New York City

Debenhams launched

[R]4:00 PM Frankfurt – Debenhams launched £200 million 7-year senior notes offerings maturing in 2021. Sainsbury and Denmark based Netto to form a joint venture. Shire rejected £27.3 billion takeover offer. Siemens lifted cash portion of the offer for the energy business of Alstom.[/R]

In London trading, FTSE 100 index gained 0.4% or 29.49 to 6,837.60 and in Frankfurt the DAX index rose 0.1% or 13.87 to 10,017.87.

In Paris, CAC 40 index slid 0.05% or 2.35 to 4,560.69.

Balfour Beatty Plc increased 1.2% to 239.24 pence after the U.K.-based infrastructure developer said today it reached financial close for phase one of the Texas A&M University student accommodation project valued at $104 million or £62 million. The combined value of both phases is $200 million or £119 million.

Cupid Plc rose 0.4% to 41.40 pence after the U.K.-based online-dating service provider forecasted revenue for the first-half will be slightly lower at £7 million and EBITDA loss about of £3 million.

Debenhams Plc gained 1.2% to 73 pence after the U.K.-based apparel and accessory retailer launched £200 million senior notes offerings maturing in 2021. The proceeds from the issue are planned to repay the maturing debt.

J Sainsbury Plc slipped 1.4% to 316.90 pence after the U.K.-based grocery retailer in a partnership with Denmark-based Netto plan to open 15 stores by the end of 2015.

Both retailers will invest £25 million to open its first Netto stores in the Northern England later this year.

Shire Plc surged 16.3% to 4,348 pence after the U.K.-based bio-pharma company rejected £27.3 billion or $46.5 billion takeover offer from the U.S.-based drug-maker AbbVie Inc.

Siemens AG rose 0.9% to €100.41 after the Germany-based infrastructure developer and Japan-based Mitsubishi Heavy Industries revised proposal for the energy business of Alstom SA.

The revised proposal raised its cash component by €1.2 billion to €8.2 billion, valuing the company’s energy assets at €14.6 billion or $19.9 billion. Siemens increased its total offer by €400 million which is more than previously offer and surpassed the GE’s offer €12.4 billion.

Mitsubishi Heavy Industries now plans to buy 40% stake in the combined steam, grid and hydro units of Alstom and increased cash contribution by €800 million from €3.1 billion to €3.9 billion.