WEBVTT - UniCredit Dips, Amplifon Falls, Hensoldt Gains 

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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 1>Well, let's take a look at some stocks on the

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<v Speaker 1>move today in Europe. I'm Stephen Carroll with Caroline Hepger

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<v Speaker 1>and we're joined by Bloomberg reporter Chloe Melee.

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<v Speaker 2>Chloe, good morning.

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<v Speaker 1>Let's start with some m and a news in the

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<v Speaker 1>European banking sector. UniCredit making a bid for commerce Bank.

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<v Speaker 3>Yeah, this UniCredit Commas Bank saga that started in late

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<v Speaker 3>twenty twenty four had gone a little bit quiet recently,

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<v Speaker 3>but now it's very much back. So UniCredit, as you said,

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<v Speaker 3>has made a thirty five billion euro takeover bid for

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<v Speaker 3>Commas Bank, although it is not expected that it would

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<v Speaker 3>gain full control, but essentially just push that stake above

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<v Speaker 3>thirty percent. And as we remember, it is not the

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<v Speaker 3>first time that UniCredit has tried to get that deal

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<v Speaker 3>done with Commos Bank. The CEO at first disclosed the

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<v Speaker 3>stake in the bank in twenty twenty four, and then

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<v Speaker 3>he went on to expand that stake more and more.

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<v Speaker 3>But throughout this entire time, the German government has been

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<v Speaker 3>really opposed to a takeover by UniCredit and has made

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<v Speaker 3>it very clear. And since then, the commers Bank share

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<v Speaker 3>price has risen a little bit more strongly than UniCredit,

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<v Speaker 3>which is making a bit more expensive. But since the

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<v Speaker 3>beginning of this year of twenty twenty six, commers Bank

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<v Speaker 3>has struggled a little bit more. It's one of the

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<v Speaker 3>worst performers in that European banking sector and that might

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<v Speaker 3>have led to UniCredit to try and pounce once again.

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<v Speaker 3>Right now, UniCredit shares are down at a little bit.

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<v Speaker 3>Of commerce Bank shares rose also actually quite a bit

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<v Speaker 3>on the back of that deal, but we'll just have

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<v Speaker 3>to wait and see if this happens this time.

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<v Speaker 4>Yeah, okay, so that on the UniCredit commas Bank deal,

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<v Speaker 4>I mean it, it's sort of notable, isn't it. At

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<v Speaker 4>a time as such flux in markets that you're seeing

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<v Speaker 4>potentially a major banking m and a bit of activity.

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<v Speaker 4>There's also some buzz about another merger acquisition Amplify.

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<v Speaker 3>Yeah, yeah, there's been. It's actually been quite a busy

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<v Speaker 3>m and a day this morning. So it's a similar

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<v Speaker 3>dynamic here with Amplophon and gin Store Nord, which where

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<v Speaker 3>we see the shares in the target rising and then

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<v Speaker 3>shares in the acquirer falling, though here the movements are

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<v Speaker 3>actually even wilder. So gin Store Nord shares a surge

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<v Speaker 3>more than forty percent, which was actually the most on record,

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<v Speaker 3>after it had agreed to sell its hearing aid business

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<v Speaker 3>to Ampliphon, and that is a deal that is valued

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<v Speaker 3>at about two point six billion a dollar. So that

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<v Speaker 3>deal will make Amplifon a much larger competitor in that

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<v Speaker 3>hearing aid business, which is an area that where a

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<v Speaker 3>lot of bigger players are trying to get into it,

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<v Speaker 3>so Eslo Luxotica for example. But the Ampliphon stock actually

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<v Speaker 3>felt quite a lot on the back of this announcement,

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<v Speaker 3>and some of it it might have to do with

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<v Speaker 3>the costs related to the acquisition. So it estimates integration

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<v Speaker 3>costs of around eighty million euros in the next two

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<v Speaker 3>to three years, and that might have been actually the

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<v Speaker 3>focus for investors explaining of that weakness in the shares

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<v Speaker 3>this morning.

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<v Speaker 1>Yeah, indeed, shows down over six percent today. And let's

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<v Speaker 1>bring you then to the defense sector next and handsold.

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<v Speaker 1>What's the news from them this morning.

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<v Speaker 3>Yeah, there's a couple of things Driving handsold this morning,

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<v Speaker 3>so it was raised to a hold rating by KEPRA

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<v Speaker 3>Shover analysts. There's also a cooperation agreement between Hensolt and

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<v Speaker 3>Ammovio to open up career opportunities for Amovia employees, so

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<v Speaker 3>essentially kind of creating a pipeline for employees in the

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<v Speaker 3>auto industry, which has been, as we know, quite struggling

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<v Speaker 3>quite a bit, to transition into the defense industry where

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<v Speaker 3>there's definitely a lot more demand and a lot more activity.

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<v Speaker 3>And then it's also a handsol is also benefiting from

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<v Speaker 3>that broader defense trade of course, which has obviously been

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<v Speaker 3>very relevant over the last few weeks as the conflict

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<v Speaker 3>in the Middle East shows really no sign of abating.

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<v Speaker 3>So we've seen other names in that sector also in

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<v Speaker 3>the green this morning, including Ryan Mettal and Rent Group.

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<v Speaker 3>And you know, we've entered the third week now of

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<v Speaker 3>that conflict. There's really no clarity on win. Trump will

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<v Speaker 3>be ready to call the end of it, given he's

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<v Speaker 3>the person in the best position really to stop that conflict,

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<v Speaker 3>to bring it to an end. But in the in meanwhile,

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<v Speaker 3>the defense is really benefiting from this given the expectation

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<v Speaker 3>that they will need to be more military spending, more

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<v Speaker 3>defense spending in the geopolitical environment that is so tense

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<v Speaker 3>at the moment.

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