Breaking News
Investing Pro 0

M&A 'boom' dominates Europe share trading as oil leads gains

Stock Markets Dec 12, 2017 12:40PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The German share price index, DAX board, is seen at the stock exchange in Frankfurt
 
FCHI
+0.94%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
STOXX50
+0.40%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GMAB
+2.19%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
URW
-0.80%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AAPL
+3.71%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ATOS
-3.64%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Helen Reid and Danilo Masoni

LONDON/MILAN (Reuters) - Mergers and acquisitions dominated European share trading on Tuesday, while strength in oil stocks after a pipeline shutdown helped lift a key regional benchmark index to five-week highs.

The pan-European STOXX 600 (STOXX) index climbed 0.7 percent to its highest level since Nov. 9, while euro zone blue chip stocks (STOXX50E) rose 0.4 percent, helped by a late drop in the euro .

Gemalto (AS:GTO) surged 34.6 percent after French tech consultancy Atos (PA:ATOS) tabled an all-cash bid valuing the Dutch cybersecurity company at 4.3 billion euros.

Gemalto shares, which have been dented by four profit warnings in a year, led gainers on the STOXX on Tuesday and helped the tech sector (SX8P) bounce 1.7 percent. Gemalto's shares ended at 45.6 euros - just below the bid price.

Gemalto has until Friday to review the unsolicited bid, which Atos hopes will boost its digital security credentials. Atos shares rose 7.1 percent to the top of the CAC 40.

In other deal-driven moves, Unibail-Rodamco (AS:UNBP) declined 4.1 percent after the French commercial real estate group offered to buy shopping mall owner Westfield Corp for $16 billion.

"Year ends with M&A boom on French market," wrote Kepler Cheuvreux analysts.

"While the acquisition of Gemalto is not the straightforward one we expected, Atos's management has a strong track record for turning around companies," they added.

Unibail's acquisition of Westfield would help it "finally" get U.S. and UK exposure, Kepler said.

Oil stocks (SXEP) rallied after oil prices rose above $65 a barrel for the first time since mid-2015 following a shutdown of the UK's biggest North Sea oil pipeline.

The oil and gas sector (SXEP), which has been the worst-performing this year, jumped 1.6 percent.

Dialog Semiconductor (DE:DLGS) rose 4.6 percent, with one trader pointing to a report that the company's chips were to be used in Huawei's Mate 10 Android smartphones.

Dialog's shares have plummeted this year due to concerns over its reliance on top customer Apple (NASDAQ:AAPL), which could in-source its power chip production.

"The power chip in Huawei is a fast charging solution, and it's a new play for (Dialog) as far as a new customer," said Lee Simpson, analyst at Stifel.

"But it's a difficult story to fully embrace given your 75 percent customer is leaving the building," he added. Stifel downgraded Dialog to "hold" from "buy" earlier on Tuesday.

Genmab (CO:GEN) fell 6.2 percent after it flagged 2018 expense growth of 40 to 50 percent due to pipeline investments.

South African retailer Steinhoff (DE:SNHG) meanwhile jumped 22.8 percent, which still left its shares at around a quarter of their price before accounting irregularities emerged.

PostNL (AS:PTNL) gained 4.4 percent after JP Morgan upgraded the stock to "overweight", saying it offered attractive dividend prospects.

M&A 'boom' dominates Europe share trading as oil leads gains
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email