Shire Accepts $55 B Offer, Asia Drives Hermes Sales

Nigel Thomas
18 Jul, 2014
New York City

Shire accepted

[R]4:00 PM Frankfurt – Shire accepted a £32 billion AbbVie’s takeover offer. Ericsson net surged 76% to 2.7 billion kronor. Electrolux net swung to loss of 92 million kronor. Hermes Intl revenue soared 8% to €1.9 billion. Ineos Olefins received loan from the UK Government. Volvo net climbed 21%.[/R]

In London trading, FTSE 100 index inched lower 0.06% or 3.45 to 6,734.87 and in Frankfurt the DAX index fell 0.6% or 61.24 to 9,692.64.

In Paris, CAC 40 index slid 0.08% or 3.31 to 4,312.81.

Ericsson surged 7.3% to 81.90 kronor after the Sweden-based mobile network equipment maker reported net sales in the second-quarter ending in June dropped 1% to 54.8 billion kronor from 55.3 billion kronor a year ago.

Net income in the quarter surged 76% from a year ago to 2.7 billion kronor compared to 1.5 billion kronor and diluted earnings per share rose to 0.79 kronor from 0.45 kronor.

Electrolux AB climbed 6.3% to 185 kronor after the Sweden-based home and commercial appliances maker stated net sales in the second-quarter ending in June declined 4.9% to 26.33 billion kronor from 27.67 billion kronor in the same period of a year ago.

Net in the quarter swung to a loss from a year ago period to 92 million kronor compared to profit of 642 million kronor and diluted loss per share swung to a 0.32 kronor from a earnings of 2.23 kronor per share.

Hermes International SCA dropped 2.1% to €262 after the France-based luxury products maker said revenue in the first-quarter ending in June soared 7.9% to €1.91 billion from €1.77 billion a year ago period.

Hermes said sales in Europe region in the period jumped 6.7% to €678.6 million and sales in Asia climbed 8.7% to €883.1 million. Sales from America surged 7.2% to €306.7 million.

Ineos Olefins & Polymers, the U.K.-based chemicals and polymers producer received infrastructure loan guarantee of €285 million from the UK Government to construct a ethane gas storage tank at its refinery of Scotland.

Shire Plc jumped 3.3% to 4,964 pence after the Ireland-based pharmaceutical company accepted £32 billion or $54.8 billion takeover offer from the U.S.-based AbbVie Inc.

Under the revised terms of merger, shareholders of the Shire will receive cash and stock valued £24.44 in cash per share and 0.8960 new shares in the newly merged company. The indicative value of £52.48 or $89.80 per Shire share based on AbbVie’s closing share price of $53.52 of yesterday.

Volvo AB plunged 5.2% to 88 kronor after the Sweden-based commercial transport and aircraft engines maker said net sales in the second-quarter ending in June slipped 1% to 72.6 billion kronor from 72.8 billion kronor a year earlier.

Net income in the quarter climbed 21% from a year ago period to 2.53 billion kronor compared to 2.09 billion kronor and diluted earnings per share rose to 1.22 kronor from 0.99 kronor.