WEBVTT - TKMS Rises, Segro's No, Trainline Falls 

0:00:02.520 --> 0:00:08.720
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News, The.

0:00:08.720 --> 0:00:12.560
<v Speaker 2>Stock Movers Report, your roundup of companies making moves in

0:00:12.600 --> 0:00:15.880
<v Speaker 2>the stock market. Harnessing the power of Bloomberg Data.

0:00:16.800 --> 0:00:18.680
<v Speaker 3>Let's take a look at some of the stocks on

0:00:18.720 --> 0:00:22.280
<v Speaker 3>the move today in Europe. I'm Tima Adabai with Stephen Carroll,

0:00:22.320 --> 0:00:26.320
<v Speaker 3>and we're joined by Bloomberg's Breaking News editor Louise Moon. Louise,

0:00:26.520 --> 0:00:30.159
<v Speaker 3>good morning. Let's start with TKMS. I've been following this

0:00:30.280 --> 0:00:32.760
<v Speaker 3>saga over the last few days. It looks like they're

0:00:32.800 --> 0:00:36.120
<v Speaker 3>teaching the German defense sector that all's fair in love

0:00:36.120 --> 0:00:36.480
<v Speaker 3>and war.

0:00:36.880 --> 0:00:39.240
<v Speaker 1>Well indeed, and shares up as much as twelve percent

0:00:39.440 --> 0:00:40.080
<v Speaker 1>this morning.

0:00:40.479 --> 0:00:43.560
<v Speaker 4>This is on the news that Germany has shelved buying

0:00:43.880 --> 0:00:46.920
<v Speaker 4>six anti marine warships from Ryan Mattal, the other huge

0:00:46.960 --> 0:00:51.479
<v Speaker 4>German defense company, and that deal was the largest procurement

0:00:51.560 --> 0:00:55.960
<v Speaker 4>project in the history of Germany's navy. Instead, they're buying

0:00:55.960 --> 0:00:59.400
<v Speaker 4>eight warships from TKMS. These are significantly smaller warships, so

0:00:59.440 --> 0:01:02.080
<v Speaker 4>it's a smaller overall deal, but boosting, as I say,

0:01:02.280 --> 0:01:06.280
<v Speaker 4>tkms's share price right it out. On the other hand, unsurprisingly,

0:01:06.319 --> 0:01:08.839
<v Speaker 4>shares are down, sinking as much as sixteen percent.

0:01:08.959 --> 0:01:11.440
<v Speaker 1>That's their biggest drop in over a year.

0:01:11.640 --> 0:01:15.040
<v Speaker 4>In terms of, you know, the wider context and questions

0:01:15.040 --> 0:01:18.280
<v Speaker 4>around this, it's in terms of the German government. There's

0:01:18.360 --> 0:01:20.800
<v Speaker 4>questions over you know, their plans, a lack of visibility

0:01:20.800 --> 0:01:25.000
<v Speaker 4>about those plans, how it's allocating its expanded defense budget. Obviously,

0:01:25.040 --> 0:01:27.520
<v Speaker 4>they also pulled out of the Franco German fighter jet

0:01:27.520 --> 0:01:29.560
<v Speaker 4>program two weeks ago, so there's a few questions around that.

0:01:29.600 --> 0:01:32.360
<v Speaker 4>But in terms of today's moves, as I say, TKMS

0:01:32.720 --> 0:01:36.160
<v Speaker 4>rising on the back of that switch in where they're

0:01:36.160 --> 0:01:38.200
<v Speaker 4>procuring those ships from.

0:01:38.560 --> 0:01:41.760
<v Speaker 2>Let's talk next about Sagro rejecting a deal which could

0:01:41.760 --> 0:01:44.839
<v Speaker 2>have been the biggest for a publicly traded European property firm.

0:01:45.200 --> 0:01:46.480
<v Speaker 1>Yeah, really fascinating this one.

0:01:46.520 --> 0:01:48.400
<v Speaker 4>So Sagwa shares have soared on the back of this,

0:01:48.560 --> 0:01:51.240
<v Speaker 4>up as much as twenty percent this morning in London.

0:01:51.480 --> 0:01:54.280
<v Speaker 4>So i'd say they had a takeover approach from a

0:01:54.400 --> 0:01:59.200
<v Speaker 4>US rival, a company called Prologuists, and they've rejected that.

0:01:59.280 --> 0:02:03.040
<v Speaker 4>They've rejected that unequivocally and unanimously in their own words,

0:02:03.200 --> 0:02:06.840
<v Speaker 4>that would have valued it at twelve point six billion pounds. Obviously,

0:02:06.880 --> 0:02:08.480
<v Speaker 4>you know when you first say, kind of logistics and

0:02:08.520 --> 0:02:11.639
<v Speaker 4>warehouses doesn't necessarily sound like the sexiest topic, but it's

0:02:11.680 --> 0:02:12.280
<v Speaker 4>really interesting.

0:02:12.360 --> 0:02:13.560
<v Speaker 1>It comes on this this boom.

0:02:13.560 --> 0:02:16.400
<v Speaker 4>There's been a huge boom in demand for warehouses on

0:02:16.440 --> 0:02:18.520
<v Speaker 4>the back of a rise in online shopping over the

0:02:18.560 --> 0:02:21.960
<v Speaker 4>past number of years, and also this need for data

0:02:21.960 --> 0:02:25.480
<v Speaker 4>centers to support AI, the rise in AI and the

0:02:25.480 --> 0:02:29.399
<v Speaker 4>boom and AI. So Prologust is the world's biggest industrial

0:02:29.480 --> 0:02:32.200
<v Speaker 4>landlord and if it bore, if this deal, you know,

0:02:32.280 --> 0:02:34.840
<v Speaker 4>ever came to fruition, it would extend its presence in

0:02:34.919 --> 0:02:38.800
<v Speaker 4>Europe as Segro is Europe's biggest warehouse owner, and as

0:02:38.840 --> 0:02:40.120
<v Speaker 4>you say, this would have been the biggest deal for

0:02:40.120 --> 0:02:44.120
<v Speaker 4>a publicly traded European property firm. And lit is saying

0:02:44.600 --> 0:02:50.640
<v Speaker 4>that the offer price should should give some reassurance that

0:02:50.720 --> 0:02:54.360
<v Speaker 4>Segro's value is actually more than what's currently reflected in

0:02:54.400 --> 0:02:57.480
<v Speaker 4>its share price, and hence their four shares rising this morning.

0:02:57.720 --> 0:03:01.240
<v Speaker 4>And Segro have always expressed kind of a similar view.

0:03:01.240 --> 0:03:03.120
<v Speaker 4>They came out with a statement not long ago saying

0:03:03.160 --> 0:03:05.799
<v Speaker 4>that the price falls a long way short of their

0:03:05.840 --> 0:03:08.400
<v Speaker 4>own views of their own value. They're comped in their

0:03:08.440 --> 0:03:10.600
<v Speaker 4>own ability to capture that value in the coming years.

0:03:11.120 --> 0:03:12.640
<v Speaker 1>So we'll have to wait and see what happens.

0:03:12.880 --> 0:03:16.480
<v Speaker 4>And if Prologusts make another attempt, they have until July

0:03:16.560 --> 0:03:18.440
<v Speaker 4>twenty second to you know, make a firm offer or

0:03:18.560 --> 0:03:21.200
<v Speaker 4>walk away. But as I say, big moves and share

0:03:21.240 --> 0:03:23.919
<v Speaker 4>price this morning, also boosting other UK real estate companies,

0:03:23.919 --> 0:03:26.720
<v Speaker 4>So the likes of Shaftsbury Capital, Tritax, big Box on

0:03:27.360 --> 0:03:32.359
<v Speaker 4>this AI potential, this sorry, this m and a potential

0:03:32.800 --> 0:03:34.680
<v Speaker 4>in the real estate sector.

0:03:34.840 --> 0:03:38.480
<v Speaker 3>Okay, and lastly to Trains struggling a bit in the

0:03:38.560 --> 0:03:42.680
<v Speaker 3>heat but train Line also suffering an analyst signaling failure.

0:03:43.240 --> 0:03:46.320
<v Speaker 4>Yes, so they announced a new CEO this morning, a

0:03:46.320 --> 0:03:49.120
<v Speaker 4>man called Ian Brown. He'll join from the end of September.

0:03:49.440 --> 0:03:53.040
<v Speaker 4>Most recently he was the boss of Flutter, the gambling

0:03:53.080 --> 0:03:57.760
<v Speaker 4>Giants UK and Ireland unit, and he was both that

0:03:57.880 --> 0:04:02.520
<v Speaker 4>experience and previous experience at booking Dot. He's known for

0:04:02.960 --> 0:04:07.520
<v Speaker 4>you know, having relevant, good experience. He oversaw continued growth

0:04:07.560 --> 0:04:10.200
<v Speaker 4>at Flutter in that unit, bolstered its market position, so

0:04:10.240 --> 0:04:13.680
<v Speaker 4>he's got a good track record. But despite that, shares

0:04:14.080 --> 0:04:17.480
<v Speaker 4>are actually falling this morning, down as much as four percent,

0:04:17.600 --> 0:04:20.200
<v Speaker 4>and List is saying that yes, he brings that leadership experience,

0:04:20.240 --> 0:04:23.640
<v Speaker 4>particularly in consumer and tech, but the company as a

0:04:23.640 --> 0:04:25.800
<v Speaker 4>whole is facing a lot of headwinds and a lot

0:04:25.839 --> 0:04:28.039
<v Speaker 4>of challenges, so he'll have to really tackle those for

0:04:28.080 --> 0:04:29.800
<v Speaker 4>anything good to come of it.

0:04:30.920 --> 0:04:34.960
<v Speaker 2>The Stock Movers Report from Bloomberg Radio. Check back with

0:04:35.040 --> 0:04:37.600
<v Speaker 2>us throughout the day for the latest roundup of companies

0:04:37.680 --> 0:04:40.800
<v Speaker 2>making news on Wall Street and for the latest market

0:04:40.800 --> 0:04:45.279
<v Speaker 2>moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube,

0:04:45.360 --> 0:04:48.880
<v Speaker 2>Bloomberg dot com, and on Applecarplay and Android Auto with

0:04:48.960 --> 0:04:50.440
<v Speaker 2>the Bloomberg Business app.