Atos in $1 B Deal with Xerox, BASF and Gazprom Exit on Asset Swap

Nigel Thomas
19 Dec, 2014
New York City

Atos agreed to acquire Xerox

[R]4:00 PM Frankfurt – Atos agreed to acquire Xerox’s IT outsourcing business for $1.05 billion. Air France KLM issued its third profit alert this year. Alstom dropped as voters reject the asset sell plan to GE. Promethean World reduced revenue forecast. Roche suspended its two clinical trials.[/R]

In London trading, FTSE 100 index jumped 1.1% or 71.64 to 6,537.64 and in Frankfurt the DAX index fell 0.4% or 34.93 to 9,776.13.

In Paris, CAC 40 index slid 0.2% or 10.70 to 4,238.79.

Atos SE climbed 4.5% to €62.57 after the France-based information technology provider agreed to acquire U.S.-based Xerox Corporation’s IT outsourcing business for $1.05 billion in cash.

Air France KLM SA tumbled 8.6% to €7.59 after the France-based airline lowered its EBITDA forecast to €200 million or $250 million, mainly due to weak unit revenues and the effects of a 14-day pilot strike.

The airline issued its third profit alert this year.

Alstom SA dropped 3.4% to €26.78 after 99.2% of shareholders at the transport and energy infrastructure provider opposed plans to sell power equipment business to General Electric. The company will focus on its smaller train subsidiary.

BASF SE slipped 1.5% to €69.60 and the Germany-based chemical maker and Russian gas pipeline systems operator Gazprom Oao agreed not to complete the asset swap and plan to exit a low-margin gas-trading business generating €12 billion $14.7 billion.

Promethean World Plc declined 4.9% to 22 pence after the U.K.-based education technology provider reduced revenue forecast for the year between £118 million and £120 million.

Roche Holding Ltd plunged 6% to 271.50 francs after the Switzerland-based pharmaceuticals and diagnostic company suspended the study on expanded use of its Kadcyla drug for treatment of breast cancer and the treatment for Alzheimer.