Speaker 1: Bloomberg Audio Studios, podcasts, radio News.
Speaker 2: The Stock Movers Report, your roundup of companies making moves
Speaker 2: in the stock market, harnessing the power of Bloomberg Data.
Speaker 3: Now, let's have a look at some of the stocks
Speaker 3: on the mood today here in Europe. I'm Caroline Hepgot
Speaker 3: with Stephen Cowe and were joined by Bloomberg's Baking News
Speaker 3: editor Louise Moon. So there's a deal happening. The private
Speaker 3: equity firm CBC agreed to buy US credit manager Marathon
Speaker 3: Asset Management. In terms of the market reaction to that.
Speaker 1: Shares are actually interestingly down slightly CVC shares that's in Amsterdam,
Speaker 1: potentially on the back of the value of the Still
Speaker 1: it's a big, a big buyout. So as you say,
Speaker 1: they're buying Marathon Asset Management, that's the US firm. The
Speaker 1: deals valued at as much as one point two billion dollars,
Speaker 1: so eight hundred million dollars of that is CBC equity,
Speaker 1: and on top of that there's also an anout consideration
Speaker 1: linked to future performance at Marathon as well, so it
Speaker 1: kind of marks the latest consolidation in this space. A
Speaker 1: lot of these these tie ups are kind of gathering
Speaker 1: pace among alternative investment firms and for CVC expands them
Speaker 1: into the US credit market. It is being pegged as
Speaker 1: a very positive deal, which is why it's it's interesting
Speaker 1: that the shares are moving slightly lower. But yeah, so
Speaker 1: expanding into the US credit market, they say it will
Speaker 1: be beneficial to earnings from twenty twenty eight onwards. And
Speaker 1: it kind of comes after the CEO he's been pursuing
Speaker 1: these trial trying to pursue these type of acquisitions for
Speaker 1: a while. He's been wanting to expand their offerings and
Speaker 1: compete with the likes of kk ARE, those giants. So
Speaker 1: this marks a step towards that for CVC.
Speaker 3: Well to France and next Luise.
Speaker 1: And there's a crisis and infant formula stock that's weighing
Speaker 1: on several companies. It is yeah, stocks kind of falling
Speaker 1: across the board as this crisis, which has been ongoing,
Speaker 1: widens to do with infant milk formula. So dan On
Speaker 1: down almost four percent this morning, wreck It over three percent.
Speaker 1: Nestley also down over one percent, and this is after
Speaker 1: on Friday, Danon recalled more of its products, so expanded
Speaker 1: the number of recalls to more European markets, and this
Speaker 1: is all due to changing standards from regulators. It has
Speaker 1: said that its products remain safe. It's try to reassure
Speaker 1: in that sense, but that's not really helping its share price.
Speaker 1: This morning there was an interesting commentary from Barclay's saying
Speaker 1: that the financial so sorry just to say so. Nesley
Speaker 1: has also been impacted by this. They've also pulled products
Speaker 1: in more than sixty countries. But Barclays are saying that
Speaker 1: the financial damage for Nesle will be ten times higher
Speaker 1: than dan On, So as much as this is impacting
Speaker 1: Danon's stock, the financial damage will actually impact Nessley more.
Speaker 1: They say that the highest cost of Danon is likely
Speaker 1: to be up to one hundred million euros, which is
Speaker 1: obviously a lot, but there's that it will be a
Speaker 1: lot more for Neslite. So this is a bit of
Speaker 1: an ongoing crisis across these European infant formula makers.
Speaker 3: Hmm yeah, okay, so on infant formula. Now to the
Speaker 3: retailer fromaka Darty. What is driving the gains for this
Speaker 3: multinational retailer.
Speaker 1: Now, yes, they've had an offer from EP Group, which
Speaker 1: is obviously led by the Czech billionaire Daniel Kotinski. He's
Speaker 1: offered to take control. He is already their largest shareholder,
Speaker 1: but he wants to or the company wants to become
Speaker 1: the long term majority shareholder. They said that they would
Speaker 1: keep existing leadership, but they would keep their dividend policy,
Speaker 1: but they want to be the long term majority shareholder.
Speaker 1: So they've offered the value of their offer is about
Speaker 1: one point one billion euros, so that's thirty six euros
Speaker 1: per share, which is a nineteen percent premium to the
Speaker 1: company's previous closing price. So we've seen their stock saw
Speaker 1: this morning up last time I looked about seventeen percent,
Speaker 1: but at one point it did hit that nineteen percent,
Speaker 1: which is that so closing that gap between the last
Speaker 1: closing price and the offer price. As I say, they
Speaker 1: say they want to keep the leadership as it is,
Speaker 1: they want to keep the dividend policy as it is.
Speaker 1: They say from their side, they think it's being welcome
Speaker 1: by the boards. They're calling it a friendly offer, and
Speaker 1: for EP it's them expanding further into France. So yeah,
Speaker 1: another eminem m and a deal today.
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