Pfizer Approaches Allergan; Bayer Net Jumps, Eni and Shell Net Swing to Loss

Nigel Thomas
29 Oct, 2015
New York City

Pfizer approached Allergan for a potential merger. Air France KLM net surged to

[R]4:00 PM Frankfurt – Pfizer approached Allergan for a potential merger. Air France KLM net surged to €624 million. Bayer profit advanced 21% to €1 billion and pharmaceutical maker may exit from its stake in Covestro by January 2017. Deutsche Lufthansa net surged. Deutsche Bank net loss widened. Eni and Shell net swung to a loss.[/R]

In London trading, FTSE 100 index slipped 54.88 or 0.8% to 6,383.06 and in Frankfurt the DAX index fell 60.16 or 0.6% to 10,773.60.

In Paris, CAC 40 index decreased 32.22 or 0.7% to 4,858.40.

Air France KLM SA declined 4.8% to €6.42 after the France-based airline reported revenues in the third-quarter ending in September jumped 7.4% from a year ago to €7.42 billion.

Net profit in the quarter surged from a year ago to €624 million compared to €106 million and diluted earnings per share soared to €1.32 from €0.24.

Total passengers in the quarter soared 7.4% to 25.90 million from 24.12 million a year ago period.

As of September, the airliner said net debt dropped to €4.33 billion from €5.41 billion from a year ago period.

Allergan Plc, the Ireland-based pharmaceutical company confirmed today that it was approached by Pfizer Inc for a potential merger but it is in “preliminary friendly discussions.”

The deal between the two companies if consummated would be the largest deal in the year so far.

Bayer AG gained 1.5% to €12.92 after the Germany-based pharmaceuticals company said revenues in the third-quarter ending in September surged 10.7% from a year ago to €11.04 billion.

Net profit in the quarter advanced 20.9% from a year ago to €999 million compared to €826 million and diluted earnings per share gained to €1.21 from €1.

Revenues in health care segment jumped 19.2% to €5.65 billion and revenues in crop science business rose 9.5% to €11.04 billion but revenues in Covestro segment slipped 0.9% to €11.04 billion

The company is likely to sell its stake in Covestro by January 2017.

Bayer forecasted sales for the year approximately at €46 billion.

Deutsche Lufthansa AG tumbled 9.5% to €12.92 after the Germany-based airfreight and airline services provider said total revenues in the nine-month ending in September soared 7.4% from a year ago to €24.30 billion.

Net profit in the period jumped from a year ago to €1.75 billion compared to €482 million and diluted earnings per share increased to €3.78 from €1.05.

Deutsche Bank AG plummeted 7.6% to €25.37 after the Germany-based investment bank said revenues in the third-quarter ending in September declined 7% from a year ago to €7.33 billion.

Net loss in the quarter widened from a year ago to €6.02 billion compared to €92 million and diluted loss per share increased to €4.35 from €0.07.

The bank said decline in earnings was mainly due to impairment of the 20% stake in Hua Xia Bank, impairment of goodwill and other intangible assets of €5.8 billion and litigation charges of €1.2 billion.

Eni SpA dropped 2.8% to €14.78 after the Italy-based oil and gas explorer reported net sales in the third-quarter ending in September tumbled 29.3% from a year ago to €18.81 billion.

Net in the quarter swung to a loss from a year ago to €289 million compared to profit of €1.13 billion and diluted loss per share swung to €0.26 from diluted earnings per share of €0.48.

Fresenius SE & Co KGaA rose 0.3% to €65.19 after the Germany-based dialysis services provider said revenues in the third-quarter ending in September jumped 3% from a year ago to $4.23 billion.

Net profit in the quarter slumped 3% from a year ago to $262 million compared to $271 million and diluted earnings per share fell to 43 cents from 45 cents.

Royal Dutch Shell Plc slipped 2.3% to 1,698.50 pence after the Netherlands-based oil and gas producer reported revenues in the third-quarter ending in September tumbled 37.1% from a year ago to $69.18 billion.

Net in the quarter swung to a loss from a year ago to $7.42 billion compared to $4.46 billion and diluted loss per share swung to a $1.17 from diluted earnings per share of 70 cents.