BAT may Buy Remaining Stake in Souza Cruz; HSBC Net Falls

Nigel Thomas
23 Feb, 2015
New York City

British American Tobacco is looking to acquire 24.7% stake in Brazil-based Souza Cruz worth $3 billion. DIA net soared 60% to

[R]4:00 PM Frankfurt – British American Tobacco is looking to acquire 24.7% stake in Brazil-based Souza Cruz worth $3 billion. DIA net soared 60% to €329 million. DS Smith agreed to acquire Vienna-based rival Duropack for €300 million. HSBC profit tumbled 15% to $13.7 billion. PostNL net surged. UNITE profit jumped.[/R]

In London trading, FTSE 100 index fell 0.3% or 18.66 to 6,896.54 and in Frankfurt the DAX index gained 0.6% or 67.73 to 11,118.37.

In Paris, CAC 40 index increased 0.5% or 25.34 to 4,856.24.

British American Tobacco Plc gained 1.3% to 3,704.50 pence after the U.K.-based cigarettes maker is looking to acquire remaining stake of about 24.7% of Brazil-based Souza Cruz SA share that valued $3 billion in cash and to de-list the company.

Distribuidora Inter de Alimentacion climbed 3.7% to 6.44 after the Spain-based hard-discount supermarkets chain operator reported gross sales in the year ending in December advanced 9.9% to €9.4 billion from €9.3 billion a year ago period.

Net profit in the quarter soared 59.6% from a year ago to €329.2 million compared to €209.3 million and diluted earnings per share jumped to €26 from €4.1.

DS Smith Plc climbed 4.3% to 362.12 pence after the U.K.-based packaging company agreed to acquire Vienna-based rival packaging company Duropack for about €300 million or $341 million from a subsidiary of One Equity Partners.

The transaction is expected to complete in second-quarter of this year.

HSBC Holdings Plc declined 5% to 575 pence after the U.K.-based bank and financial service provider reported revenues in the year ending in December dropped 5.3% to $61.25 billion from $64.65 billion a year ago period.

Net profit in the year tumbled 15.5% from a year ago to $13.69 billion compared to $16.20 billion and diluted earnings per share slipped to 69 cents from 84 cents.

PostNL NV surged 12.2% to 12.3% to 3.93 after the Netherland-based postal service provider said revenues in the fourth-quarter ending in December increased 4% to €1.21 billion from €1.17 billion a year ago period.

Net profit in the quarter surged 510.5% from a year ago to €116 million compared to €19 million and diluted earnings per share jumped to €26 from €4.1.

The postal service provider added revenues form parcel segment in the quarter continued to soared 12% to €245 million and international revenues climbed 10% to €473 million.

The company forecasted underlying cash operating income for the fiscal 2015 of between €280 million and €320 million compared to €293 million in fiscal 2014.

UNITE Group Plc rose 0.6% to 527 pence after the U.K.-based student residential accommodation provider stated total revenues in the year ending in December climbed 6.8% to £108.5 million from £101.6 million a year ago period.

Net profit in the year jumped 32.1% from a year ago to £104.8 million compared to £79.3 million and diluted earnings per share increased to 52.3 pence from 46 pence.