French Election Results Lift European Markets, Akzo Warms Up to PPG Offer

Sarla Buch
24 Apr, 2017
New York City

Akzo Nobel agreed to consider the revised higher offer of

[R]4:00 PM Frankfurt – Akzo Nobel agreed to consider the revised higher offer of €26.9 billion from PPG Ind. Innogy lifted profit forecast and plans to invest €7 billion in the next three years. Jimmy Choo is inviting buyers. Philips net surged. Sartorius lifted outlook.[/R]

European markets rallied after the centrist candidate led in the first round of French presidential election.

In London trading, FTSE 100 index soared 152.13 or 2.1% to 7,266.68 and in Frankfurt the DAX index jumped 389.22 or 3.2% to 12,437.12.

In Paris, CAC 40 index surged 212.58 or 4.2% to 5,271.56.

Akzo Nobel NV jumped 5.1% to €82.19 after the Netherlands-based paint and chemicals maker said it would consider revised higher offer from the U.S.-based rival PPG Industries Inc unsolicited €26.9 billion or $28.8 billion from about €22.4 billion.

PPG Industries increased its cash-and-stock offer to €96.75 or $105.05 from €88.72 per share.

“We are extending this one last invitation to you and the AkzoNobel boards to reconsider your stance and to engage with us on creating extraordinary value and benefits for all of AkzoNobel’s stakeholders,” said PPG chief executive officer Michael McGarry.

Innogy SE increased 0.5% to €79.67 after Germany-based electricity and natural gas provider said that in its core business its plans to invest between €6.5 billion and €7 billion up to fiscal 2019 and between €2 billion and €2.5 billion in this year.

The energy provider forecasted net income in fiscal 2017 of about €1.2 billion and operating profit of about €4.4 billion.

Jimmy Choo Plc surged 10.5% to 186.25 pence after the U.S.-based women''s shoes, handbags, small leather goods retailer said that it had decided to review the various strategic options and seeking offers to maximize value for its shareholders.

JAB Luxury GmbH, the majority stake holder with 67.7% stake said it is supportive of the process.

Koninklijke Philips NV advanced 3.9% to €31.67 after the Netherlands-based health technology provider reported revenues in the first-quarter ending in March jumped 3.6% from a year ago to €5.7 billion.

Profit in the quarter surged to €259 million from €37 million in the year ago period and diluted earnings per share soared to €0.25 from €0.03.

Sartorius AG gained 1% to €79.67 after Germany-based pharmaceutical and laboratory equipment provider said group revenues in the first-quarter ending in March soared 13.6% from a year ago to €343.1 million.

Profit in the quarter jumped 17.4% to €34.4 million from €29.3 million a year ago period and diluted earnings per share increased to €0.50 from €0.42.

The management reaffirmed fiscal 2017 sales in its bioprocess solutions division Sartorius will grow about 9% to 13% and underlying operating margin will increased 0.5 percentage point from 28% reported in the same period a year ago.

Sartorius Stedim Biotech a lab products and services division of Sartorius forecasted revenue in the full-year to increase between 8% and 12% and operating margin to increase 0.5 percentage points from the prior-year reported to 27.5%.

Sartorius gained after the company posted double-digit growth in first-quarter profit and reaffirmed its 2017 guidance.