Germany, France Indexes Jump 1.7%; GE Terminates Electrolux Agreement

Lucy Stoeva
07 Dec, 2015
New York City

Markets across Europe rebounded after the U.S. reported better-than-expected November job gains. Low oil prices kept London gains in check. Electrolux plunged after GE terminated the sale of its appliance business. Ferrovial turned hostile and lifted its offer for Australia-based Broadspectrum.

[R]4:00 PM Frankfurt – Markets across Europe rebounded after the U.S. reported better-than-expected November job gains. Low oil prices kept London gains in check. Electrolux plunged after GE terminated the sale of its appliance business. Ferrovial turned hostile and lifted its offer for Australia-based Broadspectrum.[/R]

European stock markets rebounded on Monday after positive economic news from the U.S. and a rally in U.S. stocks on Friday.

The release of strong U.S. jobs data on Friday boosted the S&P 500 index and the Dow Jones Industrial Average with more than 2% each.

On the negative side, shares of oil companies declined due to a slump in crude oil prices after the Organization of the Petroleum Exporting Countries kept the current oil output levels.

In London, shares of Royal Dutch Shell fell 3.4% to 1,545 pence and BP PLC 2.5% to 351 pence.

The FTSE 100 index gained 22.22 or 0.4% to 6,260.46 and in Frankfurt the DAX index increased 207.06 or 1.9% to 10,960.46.

In Paris, CAC 40 index jumped 75.80 or 1.7% to 4,790.59.

[Electrolux AB plunged 11.7% to 211.10 Swedish Kronor after General Electric terminated the $3.3 billion sale of its appliance business to Electrolux due to antitrust obstacles.

Electrolux has to pay the termination fee of $175 million to GE under certain circumstances, according to the agreement.

Ferrovial SA gained 0.7% to €21.75 after the Spanish transportation infrastructure provider lifted its offer for Australia-based Broadspectrum to about $1.35 per share, or about $715 million in cash and reached out to shareholders.

A year ago, the company had offered $2 per share, or a total of $1 billion.

Linde AG increased 0.9% to €138.95 after the German technology group agreed to acquire the U.S.-based privately held respiratory care services provider American HomePatient for an undisclosed amount.

The deal is expected to close in the first quarter of 2016.

Serco Group PLC tumbled 6.9% to 106.4 pence 7.3% after the British outsourcing company issued a profit warning.

Profits are expected to decline by nearly 50% next year after Serco Group lost key contracts.

The company has been dealing with allegations of fraud in the past year and is still under investigation.

Novartis AG climbed 1.53% to 86.7 Swiss francs after the pharmaceutical company announced successful trial on its leukemia drug midostaurin.