Ofcom Imposes Record Fine on BT, Indian Parts Maker Buys PKC

Sarla Buch
27 Mar, 2017
New York City

Accor is in talk to acquire Potel & Chabot for

[R]4:00 PM Frankfurt – Accor is in talk to acquire Potel & Chabot for €100 million. U.K. regulator imposed largest ever fine on BT for failing to provide broadband services to wholesalers. Exova surged on three proposals. Old Mutual reduced its stake in OM Asset Management. Motherson Sumi buys PKC Group.[/R]

In London trading, FTSE 100 index declined 67.89 or 0.9% to 7,268.93 and in Frankfurt the DAX index slumped 134.34 or 1.1% to 11,929.34.

In Paris, CAC 40 index dropped 27 or 0.5% to 4,993.90.

Accor S.A gained 0.4% to €37.91 after France-based hotel operator said domestic investment services provider are in preliminary talks to buy conference centers and hospitality events manager Groupe Potel & Chabot for about €100 million or $105 million.

BT Group Plc slumped 1.1% to 321.94 pence after the U.K.-based telecom watchdog imposed the largest ever fine of £42 million on the broadband, mobile and television services provider.

Telecom provider is expected to pay out additional £300 million to rivals over delayed high-speed Ethernet high-speed cable installations.

Ofcom said BT to install the high-speed lines to wholesale customers like Vodafone and TalkTalk within 30 days or has pay compensation.

“We apologise wholeheartedly for the mistakes Openreach made in the past” and “This should not have happened and we fully accept Ofcom’s findings,” Openreach chief executive officer Clive Selley said

“Our message is clear, we will not tolerate this sort of behavior,” Ofcom investigations director Gaucho Rasmussen said.

Exova Group Plc surged 14.2% to 250 pence after the U.K.-based lab testing and advisory services provider said it had received three bid proposals from Element Materials Technology, Jacobs Holding AG and PAI Partners SAS.

Knorr-Bremse, Reuters said the privately held Germany-based vehicle braking systems maker plans for further acquisitions worth about €500 million or $543 million after biding for Sweden-based rival Haldex for 5.53 billion Swedish kronor or $630 million.

""We are not yet finished with the expansion and revamp of the company,"" group chief executive officer Klaus Deller said.

Old Mutual Plc slipped 1.7% to 218.80 pence after the U.K.-based insurance services provider agreed to sell 24.95% shareholding in OM Asset Management to China-focused HNA Capital US in two tranche for $446 million in cash.

The transaction comprises a sale of a 9.95% at a price of $15.30 per share and a sale of remaining of 15% at a price of $15.75 per share.

After the transaction, Old Mutual stake in OM Asset will reduce to 25.9% from 50.8%.

PKC Group Oyj increased 0.5% to €23.54 after India-based auto parts maker Motherson Sumi Systems Ltd said that it completed the acquisition of Finland-based automobile electrical and electronics components maker for about €571 million or $620 million from Bosch Group.

Software AG dropped 1.3% to €36.17 after Germany-based software developer agreed to buy domestic rival Cumulocity GmbH without disclosing financial terms.