Philips to Spin-off Business, Yara and CF Industries in Merger Talks

Nigel Thomas
23 Sep, 2014
New York City

Eurazeo sold remaining 7.13% stake in Rexel for

[R]4:00 PM Frankfurt – Eurazeo sold remaining 7.13% stake in Rexel for €320 million. Mothercare will raised£100 million through rights offering. Philips to merge its healthcare and consumer lifestyle businesses. Tate & Lyle fell on weak outlook. Yara Intl is in merger talk with CF Industries.[/R]

In London trading, FTSE 100 index slumped 1.3% or 84.89 to 6,688.74 and in Frankfurt the DAX index dropped 1.1% or 103.08 to 9,646.46.

In Paris, CAC 40 index declined 1.5% or 68.88 to 4,373.67.

Eurazeo SA rose 0.2% to €57.75 after the France-based investment company sold its remaining 7.13% stake in Rexel SA, the electrical equipmentsupplier, and raised €320 million.

Mothercare Plc declined 3.8% to 238.90 pence after the U.K.-based pregnant woman apparel retailer announced plans to launch a rights issue to raise about £100 million. The company plans to use approx £45 million to refurbish stores and expand retail network.

Koninklijke Philips NV gained 1.5% to €23.86 after the Netherlands-based consumer products and healthcare equipment maker plans to split the company into two entities and merge its healthcare and consumer businesses into one company as HealthTech.

The company said its lighting business will operate as a standalone entity.

Tate & Lyle Plc tumbled 16.6% to 610.88 pence after the U.K.-based food, beverage ingredients maker forecasted adjusted pre-tax profits for the year to decline about 20% to between £230 million and £245 million. The company blamed the decline to problems in the supply chain.

The company estimated adjusted pre-tax profits for the first-half to between £95 million to £105 million.

Yara International ASA climbed 6.2% to 331.40 kronor after the Norway-based fertilizer producer is in talks with the U.S.-based CF Industries Holdings, Inc for a possible merger.