Monsanto Rejects Higher Offer from Bayer, Zalando Surges 24%

Sarla Buch
19 Jul, 2016
New York City

Bayer fell after Monsanto rejected $65 billion bid. Novartis profit and revenues fell. Rio Tinto said iron ore production soared 8% and shipment jumped 6%. Royal Mail said revenues rose 1%. Zalando surged 24% on higher than expected revenues.

[R]4:00 PM Frankfurt – Bayer fell after Monsanto rejected $65 billion bid. Novartis profit and revenues fell. Rio Tinto said iron ore production soared 8% and shipment jumped 6%. Royal Mail said revenues rose 1%. Zalando surged 24% on higher than expected revenues.[/R]

European markets traded near one-week low after mining companies and banks struggled on the outlook.

In London trading, FTSE 100 index edged up 1.95 to 6,697.37 and in Frankfurt the DAX index fell 86.14 or 0.9% to 9,975.45.

In Paris, CAC 40 index dropped 30.35 or 0.7% to 4,325.90.

Bayer AG slumped 1.2% to €91.78 after the U.S.-based agriculture products maker Monsanto Company said takeover bid from Germany-based chemical and pharmaceutical company for $65 billion is ""financially inadequate and insufficient to ensure deal certainty.""

However, Monsanto said that the company is open further conversations with Bayer and other parties in the best interest of shareholders but ""there is no assurance that any transaction will be entered into or consummated, or on what terms.""

Novartis AG edged up 0.06% to 80.50 Swiss francs after the Switzerland-based healthcare products maker reported net sales in the second-quarter ending in June fell 1.7% from a year ago to $12.47 billion.

Net income in the quarter dropped 1.6% from a year ago to $1.81 billion compared to $1.84 billion and diluted earnings per share were flat at 75 cents from the same period a year ago.

Rio Tinto Plc declined 3.9% to 2,366 pence after the U.K.-based mining company said iron ore production in the second-quarter soared 8% from a year ago to 80.9 metric tons and shipment jumped 6% to 82.2 metric tons.

Rio Tinto estimated Pilbara region iron ore shipments in 2016 of about 330 million tons subject to weather conditions and production is expected to be between 330 and 340 million tons in 2017.

The miner forecasted production to remain unchanged at 45 million tons of bauxite, 7.8 million tons of alumina and 3.6 million tons of aluminium.

Rio Tinto forecasted mined copper production in 2016 between 575,000 tons and 625,000 tons and refined copper production unchanged at 220,000 tons to 250,000 tons.
.
Royal Mail Plc gained 1.5% to 509.50 pence after the U.K.-based postal services provider said group revenues in the first-quarter ending on June 26 increased 1% and revenues in parcels segment jumped 2% after parcels volumes advanced 2%.

The Postal services provider said revenues in letter business dropped 3% after addressed letter volumes decreased by 2%.

Zalando SE surged 22.6% to €32.66 after the Germany-based online shoes and fashion retailer said group revenues in the second-quarter soared in the range of 24% to 26% or between €909 million and €924 million and operating profit jumped between 7.5% and 9.5% or €68 million and €88 million.

The retailer lifted its full-year revenue growth at the upper end of 20% to 25% and operating profit margin between 4% and 5.5%.

Zalando is scheduled to release financial results for the second-quarter and first-half on August 11.