Haldex Rejects Knorr-Bremse Offer, Mitie Tumbles on Forecast

Sarla Buch
19 Sep, 2016
New York City

Dairy Crest declined on full-year outlook. Haldex rejected higher offer from Knorr-Bremse. Mitie tumbled 28% on lowered full-year operating profit forecast. Rolls-Royce said it reduced additional 200 management roles.

[R]4:00 PM Frankfurt – Dairy Crest declined on full-year outlook. Haldex rejected higher offer from Knorr-Bremse. Mitie tumbled 28% on lowered full-year operating profit forecast. Rolls-Royce said it reduced additional 200 management roles.[/R]

In London trading, FTSE 100 index jumped 94.12 or 1.4% to 6,804.40 and in Frankfurt the DAX index increased 87.20 or 0.8% to 10,365.38.

In Paris, CAC 40 index advanced 60.20 or 1.4% to 4,392.65.

Dairy Crest Group Plc declined 4.6% to 637 pence after the U.K.-based dairy products maker estimated profit in the first-half ahead of last year, mainly due to higher sales volumes across its four key brands.

However, the dairy products maker said profit in the full-year remain unchanged and volumes are expected to improve in the second-half of the year.

Haldex AB rose 0.4% to 128 Swedish Kronor after the Sweden-based brake and suspension systems maker today rejected a rival bid from Germany-based Knorr-Bremse AG for 125 crowns.

The offer was first made on September 16.

Separately, today Haldex approved takeover offer of 100 crowns per share from the Germany-based car parts maker ZF Friedrichshafen AG.

Haldex said offer of Knorr-Bremse is financially superior from ZF’s offer but ZF has received all regulatory approvals and clearances, whereas there is a real and material risk that Knorr-Bremse’s offer would fail to complete.

Mitie Group Plc tumbled 28% to 193.80 pence after in release of interim results for the first-half ending in September.

The U.K.-based outsource services provider lowered its full-year operating profit forecast below its previous expectations and one-time cost of organisational change of up to £10 million.

In the second-half, Mitie plans to reduce costs of £15 million on the slowdown in spending by corporate clients and the public sector but the company plans to spent approx £5 million to improve the performance.

Rolls-Royce Holdings Plc gained 1.3% to 737 pence after the U.K.-based civil and defense products maker said it reduced 200 management roles in effort to lift profitability between £150 million and £200 million in 2017.