IAG Offers

Nigel Thomas
27 May, 2015
New York City

IAG intends to acquire smaller rival airline Aer Lingus for

[R]4:00 PM Frankfurt – IAG intends to acquire smaller rival airline Aer Lingus for €1.36 billion. European markets advanced. Ahold net surged more than three-fold to €213 million. De La Rue profit plunged 28%. Telford Homes net soared 32%.[/R]

Market indexes across the euro zone advanced and energy stocks led the gainers after oil prices extended rally in the week.

Italy’s largest insurer Generali said it plans to pay cumulative dividend to the end of 2018 of €5 billion and the company is going to focus on building its cash position.

In London trading, FTSE 100 index gained 0.6% or 43.41 to 6,992.40 and in Frankfurt the DAX index rose 0.2% or 23.76 to 11,648.89.

In Paris, CAC 40 index increased 0.7% or 36.92 to 5,120.46.

The benchmark index in Athens jumped after Greece said it has begun the process of finalizing agreement with international creditors.

Aer Lingus Group Plc jumped 2.4% to €2.43 after the British Airways parent International Consolidated Airlines Group S.A. intends to acquire Ireland-based smaller rival airline Aer Lingus.

The offer is with a premium of 40% to closing price of €1.82 per share on December 17.

IAG offered €2.55 per share in cash comprising and a cash dividend of €0.05 per share that values Aer Lingus for about €1.36 billion or $1.52 billion.

Earlier Aer Lingus board rejected initial offer of €2.30 per share of December and a revised offer in this month at €2.40 per share.

Koninklijke Ahold N.V gained 0.4% to €18.59 after the Netherlands-based convenience stores operator reported net sales in the first-quarter ending in March soared 14.9% to €11.3 billion from €9.8 billion in a year ago period.

Net profit in the quarter surged more than three-fold from a year ago to €213 million compared to €50 million and diluted earnings per share jumped to €0.26 from €0.05.

The retailer said sales in the U.S. climbed 20% to €7.03 billion and sales in Netherland region jumped 5.7% to €3.75 billion. Net sales in Czech Republic soared 24.8% to €515 million.

De La Rue Plc tumbled 8.8% to 504.50 pence after the U.K.-based commercial banknote and passport printer reported revenues in the year declined 8% to £472.1 million from £513.3 million in a year ago period.

Net profit in the year plunged 27.5% from a year ago to £34.3 million compared to £47.3 million and diluted earnings per share slumped to 33.4 pence from 47 pence.

Daisy Group Limited, the U.K.-based privately held telecommunications and IT services provider and Toscafund agreed to acquire Phoenix IT Group Plc information technology group for about £135 million.

Hansteen Holdings Plc increased 1.9% to 121.20 pence after the U.K.-based real estate developer completed the acquisition of 13 industrial properties in Germany for €21.7 million.

Nordic Nanovector ASA fell 0.8% to 35 Norwegian kronor after the Norway-based pharmaceutical company said revenues in the first-quarter ending in March plunged 35.6% to 76,041 kronor from 118,143 kronor in a year ago period.

Net loss in the quarter widened from a year ago to 33.69 million kronor compared to 11.35 million kronor and diluted loss per share jumped to 1.18 kronor from 1.02 kronor.

Telford Homes Plc dropped 2.1% to 477.46 pence after the U.K.-based residential property developer, reported total revenues in the year ending in March surged 23.2% to £173.5 million from £140.8 million in a year ago period.

Net income in the year soared 32.2% from a year ago to £19.7 million compared to £14.9 million and diluted earnings per share increased to 32.6 pence from 25.8 pence.