BT Wins Approval to Buy EE, Volkswagen Net Swings to Loss

Nigel Thomas
28 Oct, 2015
New York City

BT Group received regulatory approval to buy EE for

[R]4:00 PM Frankfurt – BT Group received regulatory approval to buy EE for £12.5 billion. GlaxoSmithKline profit surged 34%. Heineken net soared 63% to €1.8 billion. Volkswagen net swung to a loss of €1.7 billion and the automaker set aside €6.7 billion to pay for the U.S. diesel scandal.[/R]

In London trading, FTSE 100 index jumped 72.14 or 1.1% to 6,437.41 and in Frankfurt the DAX index advanced 123.89 or 1.2% to 10,815.12.

In Paris, CAC 40 index increased 49.14 or 1% to 4,896.42.

BT Group Plc jumped 3.1% to 466.15 pence after the U.K.-based communications services provider received provisional approval from the regulatory authority to acquire unconditionally mobile operator EE a subsidiary of Deutsche Telekom and Orange in a £12.5 billion or $19 billion.

BT will control the biggest high-speed broadband network as well as the largest wireless operator to sell package of mobile, TV, home phone and Internet services in the U.K.

Daily Mail and General Trust Plc slipped 0.9% to 732 pence after the U.K.-based news and entertainment group received proposal to sell its entire 38.7% equity stake in Local World Holdings Limited, the UK regional news publisher, to Trinity Mirror Plc for about £220 million on a debt and cash-free basis.

GlaxoSmithKline Plc soared 3.7% to 1,417.65 pence after the U.K.-based healthcare company reported revenues in the third-quarter ending in September jumped 9% from a year ago to £6.13 billion.

Net profit in the quarter surged 34.2% from a year ago to £538 million compared to £401 million and diluted earnings per share increased to 11 pence from 8.2 pence.

Heineken N.V advanced 3.9% to €83.28 after the Netherlands-based brewing company said revenues in the nine-month period ending in September increased 3.9% from a year ago to €15.41 billion.

Net profit in the period soared 63.3% from a year ago to €1.78 billion compared to €1.09 billion.

Standard Life Plc rose 0.8% to 422.12 pence after the U.K.-based asset manager and insurer said net inflows in the third-quarter ending in September were £2.4 billion and 3rd party net inflows of £5.3 billion from £3.9 billion a year ago period and asset under administration jumped 2% to £301.9 billion.

Volkswagen AG jumped 3.2% to €108.55 after the Germany-based auto maker reported sales in the third-quarter ending in September advanced 5.3% from a year ago to €51.49 billion.

Net in the period swung to a loss form a year ago to €1.73 billion compared to profit of €2.93 billion diluted loss per share swung to €3.45 from diluted earnings per share of €5.84.

The vehicle maker set aside €6.7 billion to pay for diesel emission testing scandal.

Chief Financial Officer Frank Witter said the company had ""solid and robust"" cash resources to meet the financial impact of the emissions scandal.