Wednesday 7 December 2016

Tobacco takeover talk fails to ignite European stock markets

Reuters

Published 22/10/2016 | 02:30

Specialist trader Peter Giacchi gives a price, just before the opening bell, for US cigarette maker Reynolds American Inc. at the post where it is traded on the floor of the New York Stock Exchange
Specialist trader Peter Giacchi gives a price, just before the opening bell, for US cigarette maker Reynolds American Inc. at the post where it is traded on the floor of the New York Stock Exchange

European stock markets were largely unchanged yesterday even after British American Tobacco's $47bn moved to acquire the 48pc of US firm Reynolds that it doesn't already own.

  • Go To

Companies including software firm SAP also issued solid earnings reports.

In early trading, the pan-European STOXX 600 index was up 0.1pc, building on a two-week high hit in the previous session when dovish remarks from European Central Bank chief Mario Draghi further weakened the euro.

The index was also supported by some well-received earnings updates including from SAP, car parts supplier Valeo and fertiliser firm Yara.

In Ireland, the ISEQ Overall Index closed 0.3pc down at 6,035.81. It was dragged lower by shares in Ryanair, which fell 1.4pc to €12.56 by the end of the session.

Shares in Bank of Ireland also declined, shedding 1pc to 19 cent after climbing almost 10pc at one stage on Thursday.

Other fallers included hotel group Dalata, which shed 1.7pc to €4.10. Insulation maker Kingspan lost 2.5pc to close at €23.44.

The UK's FTSE-100 index closed flat at 7,020.47. Germany's DAX was also flat, as was France's CAC-40.

British American Tobacco showed choppy moves, with the stock closing 2.9pc lower after rising sharply earlier in the day following its offer to buy out US cigarette maker Reynolds American in a $47bn takeover.

Basic resources stocks were the top sector gainers, with the UK mining index rising 1.3pc following a rally in metals prices.

Shares in Anglo American, Rio Tinto, and Antofagasta rose 1.2pc to 2.8pc.

Burberry rose 3.1pc after a blog, citing sources, said rival US company Coach was working on a potential merger with Burberry. However, sources familiar with the matter said the companies were not in active merger talks.

Irish Independent

Read More

Promoted articles

Editors Choice

Also in Business