WEBVTT - Monte Dei Paschi Up, Tate & Lyle Out, Zealand Pharma Down

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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, and.

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<v Speaker 3>Look at some of the stocks on the move today

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<v Speaker 3>in Europe. I'm to you Ada Bay with Stephen Carroll

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<v Speaker 3>and we're joined by Bloomberg's Breaking News editor Louise Mean

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<v Speaker 3>Louise Monte de Pasci seems to be very popular this morning.

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<v Speaker 3>It's being inundated with offers. Can you tell us more

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<v Speaker 3>about what's going on there?

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<v Speaker 2>It is?

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<v Speaker 1>Indeed, yes, I'll start with the most recent one. So Intesa,

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<v Speaker 1>the other Italian bank, has offered to buy Montepasti, So

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<v Speaker 1>that would if you know, if that all came through

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<v Speaker 1>and came to fruition, that would boost Intesa's position as

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<v Speaker 1>the largest lender in itlay would also create one of

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<v Speaker 1>Europe's most valuable banks. So that's one of the offers

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<v Speaker 1>that it's had. That it comes a day after a

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<v Speaker 1>separate offer from Banco BPM, also of course an Italian bank.

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<v Speaker 1>They pitched what they're calling a merger of equals so

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<v Speaker 1>to combine, and the combined group would be worth about

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<v Speaker 1>fifty billion euros in total. So an interesting note from

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<v Speaker 1>Blueberg Intelligence saying in Tessa's offer is more advanced and

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<v Speaker 1>binding than Banco BPMS and therefore is putting pricing pressure

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<v Speaker 1>on Banco. So who knows, maybe a bit of a

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<v Speaker 1>kind of bidding wall will play out. That's kind of

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<v Speaker 1>waiting to be seen. But at the moment, Monte Dee

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<v Speaker 1>Pascual shares jumping as much as ten percent this morning

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<v Speaker 1>to the highest since twenty twenty two. Obviously, any deal

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<v Speaker 1>is going to have bigger implications in the Italian banking sector,

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<v Speaker 1>adding to a flurry of activity we've been seeing in

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<v Speaker 1>recent years already in that sector. So we're going to

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<v Speaker 1>be keeping a close eye. And that's some really interesting

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<v Speaker 1>activity playing out there.

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<v Speaker 2>And in London the Stock Exchange missing out on a

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<v Speaker 2>sweet deal.

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<v Speaker 1>Indeed, we're well London, it is losing Tait and Lyle,

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<v Speaker 1>obviously known as one of Britain's biggest, oldest, largest suitet

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<v Speaker 1>relation firms. So it's being bought by the US rival

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<v Speaker 1>Ingredient for two point seven billion pounds. That's been agreed

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<v Speaker 1>and as you say, it's it's another big name leaving

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<v Speaker 1>London Stock Exchange. If this happens. So the offer is

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<v Speaker 1>six hundred and fifteen pence per share in values that's

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<v Speaker 1>mostly in cash and then the rest is in dividends.

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<v Speaker 1>That represents a sixty percent premium to take and allows

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<v Speaker 1>share price before the news of a possible deal broke

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<v Speaker 1>last month. So since then shares a risen about thirty

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<v Speaker 1>one percent and then this morning more as much as

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<v Speaker 1>thirteen percent. They're still, however, trading below the offer price.

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<v Speaker 1>From Ingredients and Less are saying, you know, it's a

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<v Speaker 1>good deal. There's little risk of another bidder emerging, but

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<v Speaker 1>there is still some risk around it that regulatory approval

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<v Speaker 1>maybe would not be given given competition concerns. So it's

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<v Speaker 1>been agreed but still has to go through. So yeah,

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<v Speaker 1>shares rising today and if it all goes through, another

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<v Speaker 1>big London name leaving the stock change as we've been

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<v Speaker 1>seeing in recent years.

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<v Speaker 3>Okay, perhaps waiting a sweet escape there for Taita Lyle,

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<v Speaker 3>but moving to pharmaceuticals in the zeal And, farmer are

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<v Speaker 3>being weighed down by some poor drug results.

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<v Speaker 2>Yeah.

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<v Speaker 1>So based in Copenhagen, the biotech company said shares stumbling

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<v Speaker 1>this morning as much as twenty six percent over in

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<v Speaker 1>Copenhagen for Zealand Farmer. So they had results for two

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<v Speaker 1>experimental obesity drugs. Neither were great essentially, so one of

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<v Speaker 1>them a lot of patients discontinued the trial because of

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<v Speaker 1>gasher intestinal events so nausea, vomiting, all of that. Analystser

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<v Speaker 1>noting that that drug in particular is notably worse than

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<v Speaker 1>rival obesity drugs. And then another one for the second trial,

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<v Speaker 1>showed less weight loss than Eli Lilly's drugs, so that's

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<v Speaker 1>obviously one of their main rivals over in the US.

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<v Speaker 1>So total together, essentially there's concern about Zealand Farmer's ability

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<v Speaker 1>to compete. It's a crowded market in the weight loss

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<v Speaker 1>drug space, very competitive. You've got Eli Lilly and a

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<v Speaker 1>host of other companies. So these poor results from these

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<v Speaker 1>two trials aren't very reassuring essentially, as I say, shares

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<v Speaker 1>tumbling on the.

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<v Speaker 2>Back of that. The Stockmover's report from Bloomberg Radio. Check

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