WEBVTT - Ryanair Falls, PolyPeptide Gains, Segro Slips

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News, The.

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<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

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<v Speaker 2>the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 3>Well, let's take a look at some stocks on the

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<v Speaker 3>move today in Europe. I'm Stephen Carroll and I'm joined

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<v Speaker 3>by Bloomberg's Breaking News editor Louise Moon.

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<v Speaker 4>Louise, good morning.

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<v Speaker 3>Let's start then with Ryanair and a hit to their profits.

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<v Speaker 1>Indeed, yes, shares down this morning for Ryanair as much

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<v Speaker 1>as about almost eight percent this morning.

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<v Speaker 4>As you say hit the profits.

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<v Speaker 1>Profits fell thirty four percent in the first quarter and

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<v Speaker 1>missed estimates as well. Essentially this is all down to

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<v Speaker 1>the impacts from a war in the Middle East, so twofold,

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<v Speaker 1>driving up oil prices and weakening demand for travel.

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<v Speaker 4>So taking both of them.

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<v Speaker 1>Oil prices obviously that's fuel costs, and then demand has

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<v Speaker 1>been weakening because travelers essentially are hesitant booking trips at

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<v Speaker 1>the last minute. That therefore has forced Ryanair to cut

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<v Speaker 1>their fares their sum affairs and Summer is the peak

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<v Speaker 1>travel seasons that's really hitting their profits, as I say,

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<v Speaker 1>down thirty four percent. They also said going into the

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<v Speaker 1>second half of the year, they have no visibility, so

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<v Speaker 1>they held off issuing guidance for full year profits. So

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<v Speaker 1>across the board, a big hit to Ryanair. It's the

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<v Speaker 1>first kind of major European character report on its first quarter.

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<v Speaker 1>So despite you know, despite the fact that it's a

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<v Speaker 1>bit of a well trodden story that the war in

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<v Speaker 1>the Middle East has really hit the aviation sector, this

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<v Speaker 1>does give a bit of an insight into how and

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<v Speaker 1>the extent of the challenges still remaining. Got to be

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<v Speaker 1>said though, despite the analyst is saying that the long

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<v Speaker 1>term thesis does remain unchanged. So Ryanair is effectively has

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<v Speaker 1>a debt free balance sheet, It's order book is relatively strong,

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<v Speaker 1>it's got a strong market position. But the impact of

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<v Speaker 1>the Middle East, that's what's driving the profit for and

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<v Speaker 1>driving the share reaction this morning as well.

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<v Speaker 3>Yeah, indeed a very interesting one given especially Rhino doesn't

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<v Speaker 3>operates routes in the Middle East, so of course it

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<v Speaker 3>makes them the knock on effects more obvious in their results.

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<v Speaker 3>So let's go to Switzerland next and all cash deal

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<v Speaker 3>for the contract drug maker Polypeptide.

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<v Speaker 4>Yes, impacting their shares.

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<v Speaker 1>Shares about five percent this morning, sod but being brought

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<v Speaker 1>by a South Korean company called Samsung Biologics. This is,

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<v Speaker 1>as you say, in all cash deal values polypeptide at

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<v Speaker 1>about one point five billion Swiss francs.

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<v Speaker 4>That's about one point eight billion US dollars.

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<v Speaker 1>It represents a premium if you compare it to their

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<v Speaker 1>last clothes on Friday, of about six percent. But if

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<v Speaker 1>you compare it actually to their their stock price when

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<v Speaker 1>there were market rumors there were first market roomors first

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<v Speaker 1>started about potential takeover, it's forty percent premium, so kind

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<v Speaker 1>of unsurprising the shares up on the news for Samsung Biologics.

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<v Speaker 1>It's essentially it's expanding its manufacturing capabilities.

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<v Speaker 4>So polypeptide has.

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<v Speaker 1>Had a bit of a turnaround and it's been ramping

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<v Speaker 1>up its new facilities, which has attracted take of interest

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<v Speaker 1>not just from the South Korean company but also from

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<v Speaker 1>private equity funds. And it all comes in the wider

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<v Speaker 1>context of drug makers. There's more demand from drug makers

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<v Speaker 1>for polypeptide based medicine. So this is to treat treatments

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<v Speaker 1>for obese tea and others as well. So a big

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<v Speaker 1>deal there for the Swiss company, and that is due

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<v Speaker 1>to complete towards the end of the year.

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<v Speaker 3>Okay, And we've also been looking at Segro rejecting a

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<v Speaker 3>third bid from pro largest her investors reacting.

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<v Speaker 1>Yeah, some more big m and a news shares slipping

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<v Speaker 1>in terms of investor reaction for Segro. That's dragging down

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<v Speaker 1>the foot six hundred in London. So Segro is obviously

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<v Speaker 1>the warehouse landlord listed here in London, as you say,

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<v Speaker 1>rejected a third proposal from Prologust, and that was last

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<v Speaker 1>week that would have valued it at about thirteen point

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<v Speaker 1>five billion pounds, So it's a big deal. And essentially

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<v Speaker 1>what's happened this morning is that Prologus have come public

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<v Speaker 1>that they've they've announced that this happened, that it was rejected,

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<v Speaker 1>essentially trying to get shareholders on site. So as I say,

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<v Speaker 1>this is the third proposal, the difference being that Prologust

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<v Speaker 1>has offered some sweetness. So for example, they're saying that

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<v Speaker 1>if this does go through, they would explore a secondary

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<v Speaker 1>listing in London if investors wanted that there was enough.

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<v Speaker 4>Demand for that.

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<v Speaker 1>But yeah, they've gone public trying to persuade shareholders that

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<v Speaker 1>both sides have been had a bit of a war

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<v Speaker 1>of words I guess you could say Segro saying you

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<v Speaker 1>know that they've got the capabilities to go through their

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<v Speaker 1>plans of building a lot of data centers, whereas Prologus

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<v Speaker 1>is saying that they're understating how much money and execution

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<v Speaker 1>is needed to do that.

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<v Speaker 4>So this is still ongoing.

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<v Speaker 1>The deadline for an actual firm offer is July twenty seconds.

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<v Speaker 1>We're keeping an eye out as to what will happen,

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<v Speaker 1>and Segros has since come out and said that they

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<v Speaker 1>would engage if there was an improved bid, So we're

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<v Speaker 1>keeping a close eye as that.

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<v Speaker 4>Warren words and m and a saga drags on.

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