Axel Agrees to Acquire Business Insider, Wolseley Profit Tumbles

Nigel Thomas
29 Sep, 2015
New York City

Axel Springer agreed to acquire 88% stake in the U.S.-based online financial news aggregator Business Insider. Alma Media issue tender offer for Talentum. Metso forecasted net sales for the year up to

[R]4:00 PM Frankfurt – Axel Springer agreed to acquire 88% stake in the U.S.-based online financial news aggregator Business Insider. Alma Media issue tender offer for Talentum. Metso forecasted net sales for the year up to €3.2 billion. Wolseley profit tumbled 58% and announced a share buyback plan for as much as £300 million.[/R]

In London trading, FTSE 100 index slipped 44.05 or 0.7% to 5,914.52 and in Frankfurt the DAX index decreased 52.67 or 0.6% to 9,432.62.

In Paris, CAC 40 index fell 21.93 or 0.5% to 4,335.12.

Axel Springer SE dropped 2.1% to €51.35 after the Germany-based media company agreed to acquire an 88% stake in the U.S.-based business and financial news website Business Insider for about €306 million or $343 million.

In a conference call, Mathias Dopfner chief executive said it will take a break from major acquisitions after the deal with Business Insider.

Alma Media Oyj was halted at €2.55 after the Finland-based media group plans to make a public tender offer for its smaller rival Talentum Corporation, a newspaper group for about €43 million or $48 million in cash.

Freni Brembo SpA slipped 1.8% to €34.27 after the Italy-based brakes maker agreed to acquire 66% stake in China-based brake disc producer ASIMCO Meilian Braking Systems for about €86 million or $97 million.

Metso Oyj jumped 4.1% to €18.40 after the Finland-based mining, oil and gas services provider forecasted net sales for the year between €3 billion and €3.2 billion and operating profit of about 12.5% of the net sales after divesting of Process Automation Systems business.

Wolseley Plc tumbled 13% to 3,636 pence after the building materials distributor reported revenues in the year ending in July soared 11.3% from a year ago to £13.30 billion.

Profit in the year tumbled 57.7% from a year ago to £213 million compared to £504 million and diluted earnings per share dropped to 123.4 pence from 180.5 pence.

Wolseley plans to buy back shares for as much as £300 million or $455.1 million and said loss on closure of businesses including the impairment of assets from branch closures in the Nordic region.

The company estimated impairment and exceptional items in the year of about £242 million of which £234 million charge is related to the operations in the Nordic region.