Atkins Surges on SNC Offer, Imagination Plunges After Apple Terminates Deal

Sarla Buch
03 Apr, 2017
New York City

WS Atkins received

[R]4:00 PM Frankfurt – WS Atkins received £2.1 billion offer from Canada-based rival SNC. BP plans to sell its major North Sea pipeline operation to Ineos. Imagination Technologies tumbled after Apple terminated its contract. Schneider agreed to sell its agriculture information unit for €1 billion.[/R]

In London trading, FTSE 100 index fell 13.98 or 0.2% to 7,308.75 and in Frankfurt the DAX index increased 16.56 to 12,329.69.

In Paris, CAC 40 index decreased 14.21 or 0.3% to 5,108.29.

WS Atkins Plc surged 28.6% to 1,981 pence after the U.K.-based engineering consultancy services provider said it received an offer from Canada-based engineering and construction services provider Snc-Lavalin Group Inc for about £2.1 billion or $2.6 billion.

Atkins said SNC planned to offer 2,080 pence per share in cash, representing 35% premium to closing price of Friday.

BP Plc gained 1.1% to 462.55 pence after the U.K.-based oil and gas producer plans to sell its North Sea pipeline operation, including the Kinneil Terminal to Ineos for £199 million or $250 million.

The Forties pipeline has a capacity to transport 575,000 barrels of oil per day from fields in the North Sea and several Norwegian fields.

Burberry Group Plc increased 0.9% to 1,740 pence after the U.K.-based luxury goods manufacturer; wholesaler and retailer signed a licensing agreement with the U.S.-based rival Coty Inc effect from October 2017 to accelerate the growth and development of its beauty line.

Burberry expects to receive cash payments in the second-half for the long-term global license and related transfer of beauty business of about £130 million and £50 million for assets transferring and also receive ongoing royalty payments from October 2017.

Imagination Technologies Group Plc tumbled 63.9% to 96.62 pence after the U.K.-based graphics and video chip maker said its largest customer Apple Inc. rejected using its intellectual property in new products in iPhones, iPads and Apple Watches.

The multimedia, processor and communications technology provider today confirmed that Apple will no longer use its intellectual property in new products within two years and as such it will not be eligible for royalty payments under the current license and royalty agreement.

Apple announced that it plans to develop its own substitute and stop Imagination in the next ""15 months to two years"".

Apple license fees and royalties, as disclosed in Imagination’s annual report, represented revenue of £60.7 million for the year ended in April 2016 and fess are expected to be approximately £65 million for the year ending in April 2017.

Linde AG advanced 1.5% to €158.45 after Financial Times said Chairman Wolfgang Reitzle of Germany-based gas and engineering services provider is willing to cast his double vote at the board meeting in case the labor representatives oppose the proposed merger with U.S.-based Praxair.

Schneider Electric SE rose 0.2% to €68.77 after France-based electric components maker agreed to sell agricultural information provider Telvent DTN to Switzerland-based privately held TBG AG for about €1 billion or $1.07 billion.