1 00:00:02,520 --> 00:00:07,440 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg Data. 4 00:00:16,520 --> 00:00:18,000 Speaker 3: Now, let's have a look at some of the stocks 5 00:00:18,000 --> 00:00:20,120 Speaker 3: on the mood today here in Europe. I'm Caroline Hepgot 6 00:00:20,120 --> 00:00:22,520 Speaker 3: with Stephen Cowe and were joined by Bloomberg's Baking News 7 00:00:22,600 --> 00:00:27,280 Speaker 3: editor Louise Moon. So there's a deal happening. The private 8 00:00:27,280 --> 00:00:32,240 Speaker 3: equity firm CBC agreed to buy US credit manager Marathon 9 00:00:32,320 --> 00:00:36,640 Speaker 3: Asset Management. In terms of the market reaction to that. 10 00:00:37,280 --> 00:00:42,159 Speaker 1: Shares are actually interestingly down slightly CVC shares that's in Amsterdam, 11 00:00:42,320 --> 00:00:45,480 Speaker 1: potentially on the back of the value of the Still 12 00:00:45,520 --> 00:00:48,199 Speaker 1: it's a big, a big buyout. So as you say, 13 00:00:48,200 --> 00:00:52,159 Speaker 1: they're buying Marathon Asset Management, that's the US firm. The 14 00:00:52,200 --> 00:00:55,040 Speaker 1: deals valued at as much as one point two billion dollars, 15 00:00:55,080 --> 00:00:58,520 Speaker 1: so eight hundred million dollars of that is CBC equity, 16 00:00:59,760 --> 00:01:01,920 Speaker 1: and on top of that there's also an anout consideration 17 00:01:02,000 --> 00:01:05,000 Speaker 1: linked to future performance at Marathon as well, so it 18 00:01:05,040 --> 00:01:08,280 Speaker 1: kind of marks the latest consolidation in this space. A 19 00:01:08,280 --> 00:01:10,560 Speaker 1: lot of these these tie ups are kind of gathering 20 00:01:10,600 --> 00:01:18,000 Speaker 1: pace among alternative investment firms and for CVC expands them 21 00:01:18,040 --> 00:01:22,199 Speaker 1: into the US credit market. It is being pegged as 22 00:01:22,200 --> 00:01:24,240 Speaker 1: a very positive deal, which is why it's it's interesting 23 00:01:24,319 --> 00:01:27,440 Speaker 1: that the shares are moving slightly lower. But yeah, so 24 00:01:27,560 --> 00:01:29,840 Speaker 1: expanding into the US credit market, they say it will 25 00:01:29,840 --> 00:01:33,679 Speaker 1: be beneficial to earnings from twenty twenty eight onwards. And 26 00:01:33,760 --> 00:01:36,840 Speaker 1: it kind of comes after the CEO he's been pursuing 27 00:01:36,840 --> 00:01:39,640 Speaker 1: these trial trying to pursue these type of acquisitions for 28 00:01:39,680 --> 00:01:41,640 Speaker 1: a while. He's been wanting to expand their offerings and 29 00:01:41,680 --> 00:01:44,560 Speaker 1: compete with the likes of kk ARE, those giants. So 30 00:01:44,640 --> 00:01:48,960 Speaker 1: this marks a step towards that for CVC. 31 00:01:49,080 --> 00:01:50,360 Speaker 3: Well to France and next Luise. 32 00:01:50,440 --> 00:01:53,280 Speaker 1: And there's a crisis and infant formula stock that's weighing 33 00:01:53,320 --> 00:01:56,640 Speaker 1: on several companies. It is yeah, stocks kind of falling 34 00:01:56,800 --> 00:01:59,920 Speaker 1: across the board as this crisis, which has been ongoing, 35 00:02:00,320 --> 00:02:03,800 Speaker 1: widens to do with infant milk formula. So dan On 36 00:02:04,000 --> 00:02:07,160 Speaker 1: down almost four percent this morning, wreck It over three percent. 37 00:02:07,280 --> 00:02:11,520 Speaker 1: Nestley also down over one percent, and this is after 38 00:02:11,720 --> 00:02:16,320 Speaker 1: on Friday, Danon recalled more of its products, so expanded 39 00:02:16,320 --> 00:02:18,920 Speaker 1: the number of recalls to more European markets, and this 40 00:02:19,040 --> 00:02:22,560 Speaker 1: is all due to changing standards from regulators. It has 41 00:02:22,600 --> 00:02:26,799 Speaker 1: said that its products remain safe. It's try to reassure 42 00:02:26,840 --> 00:02:30,120 Speaker 1: in that sense, but that's not really helping its share price. 43 00:02:30,480 --> 00:02:35,640 Speaker 1: This morning there was an interesting commentary from Barclay's saying 44 00:02:36,120 --> 00:02:40,160 Speaker 1: that the financial so sorry just to say so. Nesley 45 00:02:40,200 --> 00:02:43,200 Speaker 1: has also been impacted by this. They've also pulled products 46 00:02:43,240 --> 00:02:45,320 Speaker 1: in more than sixty countries. But Barclays are saying that 47 00:02:45,360 --> 00:02:49,000 Speaker 1: the financial damage for Nesle will be ten times higher 48 00:02:49,000 --> 00:02:50,640 Speaker 1: than dan On, So as much as this is impacting 49 00:02:50,680 --> 00:02:55,000 Speaker 1: Danon's stock, the financial damage will actually impact Nessley more. 50 00:02:55,040 --> 00:02:56,880 Speaker 1: They say that the highest cost of Danon is likely 51 00:02:56,880 --> 00:02:58,840 Speaker 1: to be up to one hundred million euros, which is 52 00:02:58,840 --> 00:03:00,800 Speaker 1: obviously a lot, but there's that it will be a 53 00:03:00,840 --> 00:03:04,200 Speaker 1: lot more for Neslite. So this is a bit of 54 00:03:04,240 --> 00:03:08,680 Speaker 1: an ongoing crisis across these European infant formula makers. 55 00:03:08,760 --> 00:03:12,919 Speaker 3: Hmm yeah, okay, so on infant formula. Now to the 56 00:03:12,960 --> 00:03:16,919 Speaker 3: retailer fromaka Darty. What is driving the gains for this 57 00:03:17,480 --> 00:03:18,720 Speaker 3: multinational retailer. 58 00:03:18,760 --> 00:03:22,000 Speaker 1: Now, yes, they've had an offer from EP Group, which 59 00:03:22,000 --> 00:03:25,080 Speaker 1: is obviously led by the Czech billionaire Daniel Kotinski. He's 60 00:03:25,160 --> 00:03:29,160 Speaker 1: offered to take control. He is already their largest shareholder, 61 00:03:29,400 --> 00:03:32,080 Speaker 1: but he wants to or the company wants to become 62 00:03:32,240 --> 00:03:35,480 Speaker 1: the long term majority shareholder. They said that they would 63 00:03:35,560 --> 00:03:38,000 Speaker 1: keep existing leadership, but they would keep their dividend policy, 64 00:03:38,040 --> 00:03:40,960 Speaker 1: but they want to be the long term majority shareholder. 65 00:03:41,160 --> 00:03:44,360 Speaker 1: So they've offered the value of their offer is about 66 00:03:44,520 --> 00:03:47,200 Speaker 1: one point one billion euros, so that's thirty six euros 67 00:03:47,240 --> 00:03:51,000 Speaker 1: per share, which is a nineteen percent premium to the 68 00:03:51,000 --> 00:03:55,000 Speaker 1: company's previous closing price. So we've seen their stock saw 69 00:03:55,320 --> 00:03:57,560 Speaker 1: this morning up last time I looked about seventeen percent, 70 00:03:57,600 --> 00:03:59,720 Speaker 1: but at one point it did hit that nineteen percent, 71 00:03:59,760 --> 00:04:03,200 Speaker 1: which is that so closing that gap between the last 72 00:04:03,240 --> 00:04:06,440 Speaker 1: closing price and the offer price. As I say, they 73 00:04:06,520 --> 00:04:08,240 Speaker 1: say they want to keep the leadership as it is, 74 00:04:08,240 --> 00:04:09,960 Speaker 1: they want to keep the dividend policy as it is. 75 00:04:10,360 --> 00:04:12,920 Speaker 1: They say from their side, they think it's being welcome 76 00:04:12,960 --> 00:04:16,040 Speaker 1: by the boards. They're calling it a friendly offer, and 77 00:04:16,200 --> 00:04:22,479 Speaker 1: for EP it's them expanding further into France. So yeah, 78 00:04:22,520 --> 00:04:25,440 Speaker 1: another eminem m and a deal today. 79 00:04:26,160 --> 00:04:30,200 Speaker 2: The Stock Movers report from Bloomberg Radio. Check back with 80 00:04:30,279 --> 00:04:32,880 Speaker 2: us throughout the day for the latest roundup of companies 81 00:04:32,920 --> 00:04:36,040 Speaker 2: making news on Wall Street and for the latest market 82 00:04:36,080 --> 00:04:40,520 Speaker 2: moving headlines. Listen to Bloomberg Radio Live. Catch us on YouTube, 83 00:04:40,640 --> 00:04:44,120 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 84 00:04:44,200 --> 00:04:45,679 Speaker 2: the Bloomberg Business app.