Intesa Arranges $5.4 B for Glencore Deal, Next Tumbles 12%

Sarla Buch
04 Jan, 2017
New York City

Intesa Sanpaolo finalized up to

[R]4:00 PM Frankfurt – Intesa Sanpaolo finalized up to €5.2 billion for Glencore and Qatar fund to acquire 19.5% stake in Rosneft. Next tumbled after the retailer lowered profit forecast. U.K. competition regulator said it will review MasterCard and VocaLink Holdings ownership structure.[/R]

In London trading, FTSE 100 index edged down 3.23 to 7,174.66 and in Frankfurt the DAX index slipped 27.36 or 0.2% to 11,556.80.

In Paris, CAC 40 index slid 6.38 to 4,892.95.

Intesa Sanpaolo SpA gained 1.7% to €2.55 after Italy-based banking and financial services provider said that it has arranged to finance up to €5.2 billion or $5.4 billion for commodities trader Glencore and Qatar fund to acquire 19.5% stake in Russia-based oil company Rosneft.

Next Plc tumbled 11.9% to 4,202 pence after the UK-based specialty retailers forecasted operating profit in the year to January 2018 to fall to between £680 million and £780 million and full-price sales in the year to January 2018 to range from a 4.5% decline to 1.5% increase.

The retailer estimated pre-tax profit to January 2017 at the low end of £792 million or $972 million compared to the earlier range between £785 million and £825 million.

Next had reported pre-tax profit of £821 million in fiscal 2015-16 and the retailer also expects surplus cash from operations in fiscal 2017 between £255 million and £345 million.

Separately, Next on Wednesday said in 2018, it intends to return surplus cash to shareholders by way of four quarterly special dividends of 45 pence each with first dividend at the beginning of May 2017.

VocaLink Holdings Limited was in focus after the U.K. regulator Competition and Markets Authority said they are concerns with MasterCard Inc and the UK-based payment services provider after reviewing the ownership and competitiveness.

On July 22, 2016, MasterCard agreed with the UK-based payment processing systems provider to acquire 92.4% for £700 million or $920 million.

The Vitol Group, Reuters said the U.K.-based oil trader negotiated a deal with the National Iranian Oil Co to loan it an equivalent of $1 billion in euros guaranteed by future exports of refined products.