BAT Lifts Reynolds Offer, Rolls Royce Settles Bribery Claims

Sarla Buch
17 Jan, 2017
New York City

Alstom reaffirmed revenues to increase 5% each year up to 2020. BAT raised offer to

[R]4:00 PM Frankfurt – Alstom reaffirmed revenues to increase 5% each year up to 2020. BAT raised offer to £40 billion to acquire remaining stake of Reynolds. Casino sales in the fourth-quarter surged 9%. Lufthansa jumped on merger speculation with Etihad. Rolls-Royce agreed to settle long-back bribery claims.[/R]

In London trading, FTSE 100 index dropped 68.47 or 0.9% to 7,258.66 and in Frankfurt the DAX index edged up 5.65 to 11,560.36.

In Paris, CAC 40 index slid 6.93 to 4,875.25.

Alstom SA slipped 1.4% to €26 after France-based rail transport systems provider said revenues in the first-half ending in December jumped 3.1% from a year ago to €1.66 billion and reaffirmed revenues to rise 5% each year until 2020.

Separately, the high-speed train maker and consortium of Colas Rail and Thales wins contract from Hanoi Metropolitan Railway Management Board to supply metro system by the end of 2021, the first integrated metro system contract for Alstom in Vietnam.

Alstom share the contract worth about €190 million

British American Tobacco Plc fell 0.3% to 4,749 pence after the U.K.-based tobacco products maker agreed to pay £40 billion or $49.4 billion as it raised cash portion of the bid for total acquisition of the U.S.-based rival Reynolds American Inc to creates the world''s biggest listed tobacco products maker.

BAT already owns 42% stake in its U.S. rival and agreed to pay $29.44 in cash and 0.5260 BAT share for each share of Reynolds totaling $59.64, represents a premium of 26% of initial offer of October, valuing at peer more than $85 billion.

In October, BAT offered $56.50 per share or about $47 billion for remaining stake of 57.8% in Reynolds. Its “open and constructive dialogue” chief executive officer of BAT Nicandro Durante said.

After the deal BAT will be the largest player of next-generation e-cigarettes and other vaping products.

Casino Guichard Perrachon SA advanced 2.3% to €51.09 after France-based supermarkets, discount stores operator reported total sales in the fourth-quarter ending in December surged 9.1% from a year ago to €10.04 billion and same-store sales jumped 4.2%.

The retailer said total sales in the year rose 2% to €36.03 billion and same-store sales increased 3.8%.

Deutsche Lufthansa AG jumped 6.4% to €12.03 on media report Germany-based aviation group is in merger talks with Etihad Airways.

Rolls-Royce Holding Plc surged 7.7% to 716.25 after the U.K.-based aerospace engines maker agreed to pay £671 million or $807 million to settle the U.S. and the U.K. investigations for bribery claims for foreign officials to win business.

Under the terms, Rolls-Royce agreed to pay the U.S. Department of Justice for $169.9 million and $25.6 million to Brazil’s Ministério Público Federal and £497.3 million to the UK Serious Fraud Office plus interest.

The total payments in the first year of three agreements will be about £293 million.

Zalando SE plunged 7.2% to €36.96 after Germany-based online shoes and fashion retailer forecasted revenues in the fourth-quarter to soar between 25% and 26% or €1.1 billion from the same period a year ago.

Operating profit in the quarter estimated to jump in the range of 7.5% to 9.5% or €81 million to €104 million from €71.8 million a year earlier.