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

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

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

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

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

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<v Speaker 3>on the move today in Europe. I'm to you Added

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<v Speaker 3>Bay with Caroline Hepka, and we're joined by Bloomberg reporter

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<v Speaker 3>Chloe Melee.

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<v Speaker 2>Chloe.

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<v Speaker 3>Monte de Paski is being inundated with offers. What's going

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<v Speaker 3>on that?

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<v Speaker 1>Yeah, it's very much in demand. So Monte de Pesci

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<v Speaker 1>has received offers from both in Tessa San Paolo and

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<v Speaker 1>Banco BPM over the last few days. So this is

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<v Speaker 1>really triggering a new phase of deal making of m

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<v Speaker 1>and A in the talent banking afterwards. Already been a

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<v Speaker 1>lot of recent deals, including Monte de Pesci's own acquisition

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<v Speaker 1>of Media Banker that happened just last year. And so

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<v Speaker 1>if we look a bit deeper at these potential offers,

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<v Speaker 1>so we've got a Bank of BPM pitching a merger

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<v Speaker 1>of equals which would result in a combined entity worth

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<v Speaker 1>about fifty billion euros, and then in Tessa made instead

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<v Speaker 1>something a bit different, a thirty point six billion euro bid,

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<v Speaker 1>and so that would create the most valuable finance firm

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<v Speaker 1>in Italy. It's also a deal that involves other parties.

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<v Speaker 1>So in Tessa would essentially sell Montepesci assets to the

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<v Speaker 1>insurance company Unipoor, which would then propose a merger between

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<v Speaker 1>those assets and another company called Bepe Banker. So there's

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<v Speaker 1>a lot, maybe quite quite a bit of complexity there

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<v Speaker 1>in those potential deals, and there's a lot of happening

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<v Speaker 1>in Italian finance in the general in general, because we

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<v Speaker 1>had Banker BPM acquiring an asset manager called Animal Holding

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<v Speaker 1>as well recently. And then of course we can't not

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<v Speaker 1>mention that unicredits MNA ambitions that of course are very

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<v Speaker 1>much in focus as well. And so on the back

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<v Speaker 1>of those offers, Monte Deepesci shares really surged this morning,

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<v Speaker 1>but on the other hand, the bidders Banker BPM and

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<v Speaker 1>in Tessa were down slightly, so we'll be watching out

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<v Speaker 1>for any further developments there as well.

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<v Speaker 4>Okay, So that yeah, since we was saying by come

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<v Speaker 4>onto capacity share price up considerably today, air Bus is

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<v Speaker 4>finding out that the whole isn't greater than the sum

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<v Speaker 4>of its parts.

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<v Speaker 1>Yeah, So Ebus is said to have notified customers of

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<v Speaker 1>some delivery delays because of the shortages of some parts.

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<v Speaker 1>So this is really the latest sign of ongoing supply

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<v Speaker 1>chain issues at the company, and that is really widening

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<v Speaker 1>that performance get between Airbus and Boeing, because for all

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<v Speaker 1>of its recent and very highly publicized problems, Boeing has

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<v Speaker 1>actually been doing a lot better recently and has really

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<v Speaker 1>been able to improve output and to respond to increasing demand,

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<v Speaker 1>whereas Airbus has actually been challenged a bit more and

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<v Speaker 1>dealing with shortages of aircraft parts, in particular with problems

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<v Speaker 1>with engines from Pratt and Whitney, which is something that

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<v Speaker 1>has been ongoing for a while now. So the latest

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<v Speaker 1>earnings from Airbus were also evidence of some of that.

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<v Speaker 1>There was some weakness there. So the news of those

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<v Speaker 1>potential delivery delays that is not going to help the

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<v Speaker 1>share price, and this is obviously part of these broader

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<v Speaker 1>issues within the aviation sector. Really redealing with of course

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<v Speaker 1>is higher fuel cost, is disruption to flight schedules, and

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<v Speaker 1>so we're seeing ABBAS shares down this morning and down

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<v Speaker 1>almost twelve percent this year, so not having a great

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<v Speaker 1>year so far.

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<v Speaker 3>Okay, it looks like Berrian's pulling ahead in that race

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<v Speaker 3>between the two airline makers. But the London Stock Exchange

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<v Speaker 3>is looking bitterly at Titu Lyle. Tell us why it

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<v Speaker 3>might not be a sweet goodbye for all parties here.

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<v Speaker 1>Yeah, so there's so many punel opportunities there. So Ingredient

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<v Speaker 1>has agreed to buy Tate and Lyle, which is an

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<v Speaker 1>ingredients maker, in a two point seven billion pound deal.

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<v Speaker 1>And as you said, with regards to the London Stock Exchange,

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<v Speaker 1>this is really a symbolic loss for that exchange, given

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<v Speaker 1>that Titan Lyle is one of the oldest companies and

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<v Speaker 1>it's also the last remaining company from the UK's original

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<v Speaker 1>FT thirty index. And so the LC is, of course,

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<v Speaker 1>as we've been talking about for a while now, under

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<v Speaker 1>a lot of pressure more and more companies to private takeovers,

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<v Speaker 1>to listings in the US. And then at the same

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<v Speaker 1>time we're seeing actually very few new listings happening on

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<v Speaker 1>this London Exchange. And you know, for example, Schroders, which

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<v Speaker 1>was also one of the oldest companies in the UK,

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<v Speaker 1>was also acquired by a US firm earlier this year. Actually,

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<v Speaker 1>so the London Stock Exchange is now losing another one

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<v Speaker 1>of its oldest members. But if we look at what

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<v Speaker 1>that means for Tetanlow specifically, it seems that it's going

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<v Speaker 1>quite well. You know, the shares are jumping stone. It

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<v Speaker 1>seems that investors are quite keen on this deal. It's

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<v Speaker 1>worth noting that the shares are still trading below the

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<v Speaker 1>offer value, and some analysts are noting that there might

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<v Speaker 1>be some issues with regulatory approval, that this might not

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<v Speaker 1>be a given. So for this as well, we'll be

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<v Speaker 1>watching out for developments.

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<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

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<v Speaker 4>Mm hmm