Altice Acquires 70% Stake in Suddenlink, Marks and Spencer Net Drops

Nigel Thomas
20 May, 2015
New York City

Altice agreed to acquire 70% stake of U.S.-based Suddenlink for $9 billion. Burberry net rose 4%. Cable and Wireless net tumbled 71%. Deutsche Wohnen net swung to a loss. Marks and Spencer net fell 5%. Thomas Cook net loss narrowed.

[R]4:00 PM Frankfurt – Altice agreed to acquire 70% stake of U.S.-based Suddenlink for $9 billion. Burberry net rose 4%. Cable and Wireless net tumbled 71%. Deutsche Wohnen net swung to a loss. Marks and Spencer net fell 5%. Thomas Cook net loss narrowed.[/R]

In London trading, FTSE 100 index edged up 4.47 to 6,999.57 and in Frankfurt the DAX index decreased 0.4% or 50.99 to 11,802.34.

In Paris, CAC 40 index fell 0.3% or 16.97 to 5,100.33.

Altice SA climbed 8.2% to €125.50 after the France-based cable and wireless services provider agreed to acquire controlling stake of 70% in the U.S.-based privately held cable operator Suddenlink Communications for $9.1 billion.

However, BC Partners and CPP Investment will retain their stake of 30% in Suddenlink.

Altice operates in Europe and in the Caribbean countries with about 6.5 million of fixed-line customers and 22.5 million wireless customers.

Suddenlink is the Missouri-based 7th largest U.S. cable TV operator with 1.5 million residential customers and 90,000 business customers.

The transaction is expected to close in the fourth-quarter.

Burberry Group plc plunged 5.1% to 1,715 pence after the U.K.-based luxury goods maker and retailer reported revenues in the year ending in March climbed 8% to £2.5 billion from £2.3 billion in a year ago period.

Net profit in the year jumped 4.3% from a year ago to £336.3 million compared to £322.5 million and diluted earnings per share increased to 75.1 pence from 72.1 pence.

The luxury goods retailer said revenues in retail business soared 11% to £1.81 billion and revenues from wholesale segment jumped 3% to £648.1 million from a year ago period.

Bertrandt AG slipped 0.9% to €126.60 after the Germany-based engineering and medical technology provider said revenues in the first-half ending in March soared 9% to €451.4 million from €414 million in a year ago period.

Net profit in the period increased 3% from a year ago to €29.9 million compared to €28.7 million and earnings per share gained to €2.96 from €2.85.

Cable and Wireless Communications Plc decreased 1.7% to 67.10 pence after the U.K.-based communications service provider said revenues in the year ending in March jumped 4% to $1.8 billion from £1.7 billion in a year ago period.

Net profit in the year tumbled 71% from a year ago to $253 million compared to $859 million and diluted earnings per share slumped to 9.7 cents from 34.3 cents.

Deutsche Wohnen AG declined 4.1% to €23.86 after the Germany-based residential property developer reported revenues in the first-quarter ending in March rose 1.2% to €158.9 million from €157 million in a year ago period.

Net in the period swung to a loss from a year ago to €44.2 million compared to profit of €45.5 million and diluted loss per share swung to a €0.16 from diluted earnings per share of €0.15.

The property developer said it will offer shares for as much as €950 million to acquire 6,500 apartments in Berlin and plans to refinance debt of €1.5 billion with new bank loans and may issue bonds.

Marks and Spencer Group Plc gained 0.5% to 588.37 pence after the U.K.-based specialty retailer stated revenues in the year ending in March was flat at £10.3 billion from a year ago period.

Net profit in the year dropped 4.8% from a year ago to £481.7 million compared to £506 million and diluted earnings per share slipped to 29.5 pence from 32.2 pence.

The retailer said U.K. revenues in the year increased 0.7% and revenues in food business jumped 3.4% while revenues from general merchandise segment declined 2.5% and online sales in the year slumped to 2% and sales in the international business declined 5.7%.

Thomas Cook Group Plc slumped 2% to 153.80 pence after the U.K.-based leisure and travel company said revenues in the first-half ending in March declined 9% to £2.7 billion from £3 billion a year ago period.

Net loss in the period narrowed from a year ago to £314 million compared to £373 million and diluted loss per share decreased to 20.8 pence from 25.3 pence.