WEBVTT - AMS Surges, EasyJet Rises, H&M Drops 

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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>Let's take a look at some of the stocks on

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<v Speaker 3>the move today here in Europe. I'm Caroline Hepgar with

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<v Speaker 3>Stephen Carroll, and we're joined by Bloomberg's Breaking News editor

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<v Speaker 3>Louise Moon. Let's start by looking at easy Jet, the

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<v Speaker 3>latest bid.

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<v Speaker 4>As you know, we.

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<v Speaker 3>Could see another big UK company maybe entertaining a US takeover.

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<v Speaker 1>Well indeed, yeah, so easy. Yet they say they've unanimously rejected.

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<v Speaker 1>This is a fourth takeover bid from Castle Lake, which

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<v Speaker 1>is a US investment firm. This was for six pounds

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<v Speaker 1>fifty a share, so values easier at about or just

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<v Speaker 1>under five billion pounds. But they've rejected that, saying it

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<v Speaker 1>significantly undervalues it. They've got concerns, a few concerns, you know,

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<v Speaker 1>centered around the deliverability of the offer. The only structure

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<v Speaker 1>US entities have to have a local partner to take control,

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<v Speaker 1>which Castleake does have. So rejected, but as you say,

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<v Speaker 1>there is still potential for this to maybe happen. They've

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<v Speaker 1>been sparring for weeks over a potential deal, but the

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<v Speaker 1>opposition seems from easy yet it seems to be kind

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<v Speaker 1>of waning.

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<v Speaker 4>There's been a bit of a change of tone this morning.

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<v Speaker 1>What they've done is given Castle Lake more time to

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<v Speaker 1>come back with an even sweeter offer, so they've got

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<v Speaker 1>until July fifth and just over a week to do that.

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<v Speaker 1>And they've also given them access to some materials so

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<v Speaker 1>that they can look at those and make an offer

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<v Speaker 1>on the back of this, So there's still potential for

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<v Speaker 1>this to maybe go through.

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<v Speaker 4>Has to be said, Easier isn't making it easy.

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<v Speaker 1>They did reistererate you know their strength this morning they

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<v Speaker 1>say they're high confident in their own strategy. But you know,

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<v Speaker 1>as you say, if it happens, this would be another

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<v Speaker 1>big London firm leaving the London Stock Exchange as and

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<v Speaker 1>when and Alys have got you know, a few different

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<v Speaker 1>opinions saying you know JP Morgan for example saying easier

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<v Speaker 1>and unlikely to see he consider offers below seven one

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<v Speaker 1>hundred pence a share, so that would be a lot

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<v Speaker 1>higher than Castle like have just bid.

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<v Speaker 4>So we're waiting and seeing indeed, or we will continue

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<v Speaker 4>to do so. Staying in London Advanced Medical Solutions. Their

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<v Speaker 4>shares up sixteen percent at the moment.

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<v Speaker 1>What's going on, Yeah, absolutely surging this morning, sixteen percent.

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<v Speaker 1>As you say, this is another M and A story

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<v Speaker 1>and a London firm that has left the Stocke changel

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<v Speaker 1>or will do after this comes to fruition. So they've

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<v Speaker 1>agreed to be bought by a US firm called HB Fuller.

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<v Speaker 1>They are best known for making adhesives. They first offered

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<v Speaker 1>to buy AMS in late April and they've been going

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<v Speaker 1>back and forth since then. Now this has been agreed.

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<v Speaker 1>A's for six hundred and fifty nine million pounds. That's

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<v Speaker 1>a thirty percent premium to AMS's closing price just before

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<v Speaker 1>the news broke that they were initially discussing a deal

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<v Speaker 1>for HB Fuller. This is them wanting to push into healthcare.

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<v Speaker 1>They're saying that medical is a core strategic growth market

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<v Speaker 1>for them and it will allow them to create, you know,

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<v Speaker 1>another business unit, a fourth business unit with in their

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<v Speaker 1>company saying what add three hundred million dollars in revenue

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<v Speaker 1>and for AMS, as I say, the latest company to

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<v Speaker 1>leave London, but share searching on the back of that,

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<v Speaker 1>they are still trading below the offer price, but up

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<v Speaker 1>sixteen percent.

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<v Speaker 3>Okay, lastly, talk us through the reaction to H and

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<v Speaker 3>M's results.

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<v Speaker 1>Less of a positive share price reactions, shares down as

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<v Speaker 1>much as one point eight percent this morning. This is

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<v Speaker 1>after their second quarter earnings essentially weaker than expected. They

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<v Speaker 1>expect sales in June to be on a part with

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<v Speaker 1>the same month last year or the previous year. But

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<v Speaker 1>and this is saying, actually it's kind of a tale

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<v Speaker 1>of two halves. There's positive and negatives. On the one hand,

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<v Speaker 1>H and M are in the middle of a turnaround,

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<v Speaker 1>and the results this morning did show some improvements in

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<v Speaker 1>their profitability, so that's the positive side. On the other hand,

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<v Speaker 1>there's this persistent weakness in their top line and that's

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<v Speaker 1>not being restored or you know, made better.

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<v Speaker 4>So current trading is disappointing.

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<v Speaker 1>So yeah, so the questions over the turnaround efforts, if

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<v Speaker 1>it's enough, if it's and why it's not offsetting that

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<v Speaker 1>persistent weakness that we're seeing across retail. You know, there's

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<v Speaker 1>a lot of competition, there's a cautious consumer, so a

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<v Speaker 1>bit of a tail two holf An H and M

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<v Speaker 1>slipping on the back of that second.

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<v Speaker 2>Quarter report, the Stock Movers Report from Bloomberg Radio. Check

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