France Trims Safran Stake, Infineon Net Plunges 31%

Sarla Buch
23 Nov, 2016
New York City

Brammer agreed to be acquired for

[R]4:00 PM Frankfurt – Brammer agreed to be acquired for £221.5 million. Infineon profit plunged 31%. MacDonald Humfrey agreed to be acquired by L-3 Communications £224 million. Paragon Group net jumped 8%. French government initiated sale of 1.39% stakes in Safran.[/R]

In London trading, FTSE 100 index jumped 62.36 or 0.9% to 6,840.20 and in Frankfurt the DAX index increased 67.77 or 0.6% to 10,752.38.

In Paris, CAC 40 index advanced 41.75 or 0.9% to 4,571.48.

Brammer Plc surged 69.7% to 165.50 pence after the U.K.-based industrial parts provider agreed to be acquired by the U.S.-based private equity group Advent International Corp for about £221.5 million or $274.8 million.

In October, Brammer repeatedly warned that it didn’t expect pre-tax profit in 2016 and its turnaround strategy may need at least three years to improve financial result.

Infineon Technologies AG gained 1% to €16.57 after Germany-based chip maker reported revenues in the fourth-quarter ending in September advanced 5% from a year ago to €1.7 billion.

Net profit in the quarter plunged 30.8% from a year ago to €225 million compared to the €325 million and diluted earnings per share slumped to €0.20 from €0.29.

MacDonald Humfrey Automation Ltd, the U.K.-based privately held aviation security solutions provider agreed to be acquired by the U.S.-based defence group L-3 Communications Holdings Inc for about £224 million or $278 million.

The news was first reported by Reuters news agency.

The Paragon Group of Companies Plc advanced 2.2% to 369.90 pence after the U.K.-based mortgage and loans provider said revenues in the year ending in September soared 20.6% from a year ago to £411.4 million.

Net income in the year jumped 8.3% from a year ago to £116 million compared to the £107.1 million and diluted earnings per share rose to 39.7 pence from 34.8 pence.

The group said pre-tax profit in the year increased 6.7% to £143.2 million from a year ago.

Safran SA slipped 1.3% to €63.43 after the asset management agency - Agence des Participations de l'Etat - said French government began selling a 1.39% stake in aircraft and rocket engines maker as the government plans to invest to support new sectors.

However, French government still holds 14% stake in Safran and controls 21.9% of voting rights, the agency added.