Novartis to Spin-off Alcon Eye Care Business, Serco Lowers Outlook

Sarla Buch
29 Jun, 2018
New York City

Accor plans to acquire 50% stake in the U.S.-based SBE Entertainment for $319 million. Novartis will spin-off its Alcon eye-care business and plans to buy back $5 billion of its shares. Stagecoach net surged. Serco lowered fiscal 2018 revenues outlook.

[R]4:00 PM Frankfurt – Accor plans to acquire 50% stake in the U.S.-based SBE Entertainment for $319 million. Novartis will spin-off its Alcon eye-care business and plans to buy back $5 billion of its shares. Stagecoach net surged. Serco lowered fiscal 2018 revenues outlook.[/R]

In London trading, FTSE 100 index increased 48.28 or 0.6% to 7,663.91 and in Frankfurt the DAX index advanced 153.30 or 1.3% to 12,328.91.

In Paris, CAC 40 index jumped 69.72 or 1.3% to 5,347.49.

Accor SA gained 0.7% to €42.16 after France-based hotels and resorts operator plans to acquire 50% stake in the U.S.-based SBE Entertainment Group for about $319 million.

Novartis International AG jumped 4.3% to 75.52 Swiss francs after Switzerland-based healthcare products maker announced that it will spin-off its Alcon eye-care as stand-alone business with an estimated value of more than $20 billion.

The spinoff is expected to complete in the first-half of 2019.

Separately, today Novartis said that the company plans to buyback up to $5 billion by the end of 2019 and pay for the purhcase through the proceeds of the divestment to GSK.

Stagecoach Group plc dropped 1.3% to 138.10 pence after the U.K.-based buses, trains, trams and express coaches operator said revenues in the year ending on April 28 declined 18% from a year ago to £3.2 billion.

Net profit in the year surged to £63.8 million from £18.1 million in a year ago period and diluted loss per share advanced to 12.2 pence from 5.5 pence.

Serco Group Plc slumped 3.6% to 97.30 pence after the U.K.-based outsourcing services provider lowered fiscal 2018 revenues to between £2.7 billion and £2.8 billion from the earlier estimate of £2.8 billion to £2.9 billion.

Serco estimated operating profit to grow 20 % or about £80 million, driven by cost savings under its five-year restructuring plan.