Germany Rejects Aixtron Takeover, Syngeta Falls on Deadline Miss

Sarla Buch
24 Oct, 2016
New York City

Aixtron plunged after German ministry rejected takeover by a China based company. Cobham tumbled after the satellite services provider lowered profit outlook. French Connection surged on takeover rumors. Petra Diamonds said production in the first-quarter surged 30%.

[R]4:00 PM Frankfurt – Aixtron plunged after German ministry rejected takeover by a China based company Cobham tumbled after the satellite services provider lowered profit outlook. French Connection surged on takeover rumors. Petra Diamonds said production in the first-quarter surged 30%.[/R]

In London trading, FTSE 100 index slipped 30.42 or 0.4% to 6,990.17 and in Frankfurt the DAX index increased 83.41 or 0.8% to 10,794.35.

In Paris, CAC 40 index gained 23.16 or 0.5% to 4,559.23.

Aixtron SE plunged 10.2% to €5.21 after the German economics ministry rejected the takeover proposal by a China based company for €670 million or $728.89 million citing “security concerns.”

In an interview with Die Welt, Germany''s Deputy Economy Minister Matthias Machnig blamed it on the ""previously unknown security-related information.""

Cobham Plc tumbled 15.44% to 135.80 pence after the U.K.-based satellite communications equipment maker and aerospace group lowered profits estimate in fiscal 2016 to between £225 million and £275 million compared to £332 million reported in the same period a year ago.

In April, the aerospace equipment maker had struggled to launch emergency fund raising for £500 million.

However, Cobham said its aviation services business is “in-line with expectations” in the third quarter.

French Connection Group Plc surged 13% to 37 pence after Reuters reported the U.K.-based apparel retailer may be targeted by private equity firms including the U.S.-based Neuberger Berman and Rutland Partners.

Petra Diamonds Limited soared 6.7% to 149.20 pence after the Jersey, U.K. based rough diamonds producer said production in the first-quarter surged 30% to 1.1 million carats compared to 0.75 million and revenues increased to $94.7 million.

Syngenta AG declined 5.9% to 397.30 Swiss francs after the European Commission said Switzerland-based pesticides and seeds maker and China National Chemical Corp didn’t submit information to resolve antitrust issues related to $43 billion planned merger. October 21 was the deadline for the information.