VW Ordered to Sell Suzuki Stake, Bertelsmann Profit Surges

Nigel Thomas
31 Aug, 2015
New York City

Volkswagen was ordered by international arbitration tribunal to sell its 19.9% stake in Suzuki Motor. Maersk received approval to develop the Culzean gas field in the North Sea, U.K. Bertelsmann profit surged 55%.

[R]4:00 PM Frankfurt – Volkswagen was ordered by international arbitration tribunal to sell its 19.9% stake in Suzuki Motor. Maersk received approval to develop the Culzean gas field in the North Sea, U.K. Bertelsmann profit surged 55%.[/R]

Market indexes in Europe opened higher and extended gains and commodities traded higher.

In Frankfurt, the DAX index slid 17.09 or 0.2% to 10,298.53 and in Paris CAC 40 index slipped 28.18 or 0.6% to 4,646.95.

For the month, DAX index tumbled 9.5% and for the three month to August plunged 10.3%. Year-to-date, the index increased 4.6%.

For the month CAC 40 index plunged 8.6% and for the three months to August declined 7.2%. In the last six months, CAC 40 plummeted 5.5% but the index jumped 8.9% in the year so far.

AP Moeller Maersk A/S fell 0.2% to 11,070 kronor after the Denmark-based shipping and oil producer received an approval to develop the Culzean gas field worth about $4.5 billion, the largest new operation in the North Sea, U.K.

The gas production is expected to start from 2019 and continue for at least 13-years with estimated daily production equivalent between 60,000 barrels and 90,000 barrels.

The field is expected to be large enough to provide approximately 5% of U.K.’s natural gas demand in 2021.

Bertelsmann SE & Co KGaA, the Germany-based media and entertainment group reported revenues in the first-half ending in June jumped 2.5% a year ago period to €8 billion from €7.8 billion.

Profit in the period surged 54.9% from a year ago to €398 million compared to €257 million.

Eni SpA gained 1.6% to €14.63 after the Italy-based oil and gas explorer plans to sell a stake in the Zohr gas field in Egypt. The gas field covering about 60 square miles is expected to deliver 30 trillion cubic feet of gas.

Eurofins Scientific SE increased 1.5% to €297.40 after the Luxembourg-based laboratory services provider said revenues in the first-half ending in June soared 30.8% a year ago period to €841.9 million from €643.5 million.

Profit in the period jumped 34% from a year ago to €30.3 million compared to €22.6 million and earnings per share increased to €1.99 from €1.50.

The company lifted revenues forecast for the fiscal 2017 to achieve €2 billion.

Volkswagen AG slipped 1.6% to €168.85 after the Germany-based auto maker was ordered by international arbitration tribunal to sell its 19.9% stake worth about $3.8 billion or 463 billion yen in Japan-based Suzuki Motor Corp.

Two auto makers entered a collaboration agreement in 2009 to develop a diesel engine. The latest decision from the London, U.K. based tribunal will finally terminate the arrangement between the companies that had failed to live up to expectations.

The arbitration proceeding was initiated in 2011 by Suzuki after the Japanese auto maker claimed the breach of contract by Volkswagen.