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Speaker 3: Well, let's take a look at some stocks on the
Speaker 3: move today in Europe. I'm Stephen Carroll and I'm joined
Speaker 3: by Bloomberg's Breaking News editor Louise Moon.
Speaker 4: Louise, good morning.
Speaker 3: Let's start then with Ryanair and a hit to their profits.
Speaker 1: Indeed, yes, shares down this morning for Ryanair as much
Speaker 1: as about almost eight percent this morning.
Speaker 4: As you say hit the profits.
Speaker 1: Profits fell thirty four percent in the first quarter and
Speaker 1: missed estimates as well. Essentially this is all down to
Speaker 1: the impacts from a war in the Middle East, so twofold,
Speaker 1: driving up oil prices and weakening demand for travel.
Speaker 4: So taking both of them.
Speaker 1: Oil prices obviously that's fuel costs, and then demand has
Speaker 1: been weakening because travelers essentially are hesitant booking trips at
Speaker 1: the last minute. That therefore has forced Ryanair to cut
Speaker 1: their fares their sum affairs and Summer is the peak
Speaker 1: travel seasons that's really hitting their profits, as I say,
Speaker 1: down thirty four percent. They also said going into the
Speaker 1: second half of the year, they have no visibility, so
Speaker 1: they held off issuing guidance for full year profits. So
Speaker 1: across the board, a big hit to Ryanair. It's the
Speaker 1: first kind of major European character report on its first quarter.
Speaker 1: So despite you know, despite the fact that it's a
Speaker 1: bit of a well trodden story that the war in
Speaker 1: the Middle East has really hit the aviation sector, this
Speaker 1: does give a bit of an insight into how and
Speaker 1: the extent of the challenges still remaining. Got to be
Speaker 1: said though, despite the analyst is saying that the long
Speaker 1: term thesis does remain unchanged. So Ryanair is effectively has
Speaker 1: a debt free balance sheet, It's order book is relatively strong,
Speaker 1: it's got a strong market position. But the impact of
Speaker 1: the Middle East, that's what's driving the profit for and
Speaker 1: driving the share reaction this morning as well.
Speaker 3: Yeah, indeed a very interesting one given especially Rhino doesn't
Speaker 3: operates routes in the Middle East, so of course it
Speaker 3: makes them the knock on effects more obvious in their results.
Speaker 3: So let's go to Switzerland next and all cash deal
Speaker 3: for the contract drug maker Polypeptide.
Speaker 4: Yes, impacting their shares.
Speaker 1: Shares about five percent this morning, sod but being brought
Speaker 1: by a South Korean company called Samsung Biologics. This is,
Speaker 1: as you say, in all cash deal values polypeptide at
Speaker 1: about one point five billion Swiss francs.
Speaker 4: That's about one point eight billion US dollars.
Speaker 1: It represents a premium if you compare it to their
Speaker 1: last clothes on Friday, of about six percent. But if
Speaker 1: you compare it actually to their their stock price when
Speaker 1: there were market rumors there were first market roomors first
Speaker 1: started about potential takeover, it's forty percent premium, so kind
Speaker 1: of unsurprising the shares up on the news for Samsung Biologics.
Speaker 1: It's essentially it's expanding its manufacturing capabilities.
Speaker 4: So polypeptide has.
Speaker 1: Had a bit of a turnaround and it's been ramping
Speaker 1: up its new facilities, which has attracted take of interest
Speaker 1: not just from the South Korean company but also from
Speaker 1: private equity funds. And it all comes in the wider
Speaker 1: context of drug makers. There's more demand from drug makers
Speaker 1: for polypeptide based medicine. So this is to treat treatments
Speaker 1: for obese tea and others as well. So a big
Speaker 1: deal there for the Swiss company, and that is due
Speaker 1: to complete towards the end of the year.
Speaker 3: Okay, And we've also been looking at Segro rejecting a
Speaker 3: third bid from pro largest her investors reacting.
Speaker 1: Yeah, some more big m and a news shares slipping
Speaker 1: in terms of investor reaction for Segro. That's dragging down
Speaker 1: the foot six hundred in London. So Segro is obviously
Speaker 1: the warehouse landlord listed here in London, as you say,
Speaker 1: rejected a third proposal from Prologust, and that was last
Speaker 1: week that would have valued it at about thirteen point
Speaker 1: five billion pounds, So it's a big deal. And essentially
Speaker 1: what's happened this morning is that Prologus have come public
Speaker 1: that they've they've announced that this happened, that it was rejected,
Speaker 1: essentially trying to get shareholders on site. So as I say,
Speaker 1: this is the third proposal, the difference being that Prologust
Speaker 1: has offered some sweetness. So for example, they're saying that
Speaker 1: if this does go through, they would explore a secondary
Speaker 1: listing in London if investors wanted that there was enough.
Speaker 4: Demand for that.
Speaker 1: But yeah, they've gone public trying to persuade shareholders that
Speaker 1: both sides have been had a bit of a war
Speaker 1: of words I guess you could say Segro saying you
Speaker 1: know that they've got the capabilities to go through their
Speaker 1: plans of building a lot of data centers, whereas Prologus
Speaker 1: is saying that they're understating how much money and execution
Speaker 1: is needed to do that.
Speaker 4: So this is still ongoing.
Speaker 1: The deadline for an actual firm offer is July twenty seconds.
Speaker 1: We're keeping an eye out as to what will happen,
Speaker 1: and Segros has since come out and said that they
Speaker 1: would engage if there was an improved bid, So we're
Speaker 1: keeping a close eye as that.
Speaker 4: Warren words and m and a saga drags on.
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