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 1: Now, let's take a look at some of the stocks
Speaker 1: on the move today in Europe. I'm Lizzie Burden with
Speaker 1: Caroline Hepcat and were joined by Bloomberg reporter Chloe Melly.
Speaker 1: Happy Monday, Chloe, Happy Monday. It's a happy Monday for
Speaker 1: EasyJet as well. Up nine point five percent off the
Speaker 1: back of this Castle Lake bid successful. Finally, what's different now?
Speaker 3: Yeah, so, as you say, after weeks of playing hard
Speaker 3: to get easy Jet as finally said yes, So it's
Speaker 3: agreed in principle to the fifth takeover bid by Castle Lake,
Speaker 3: which is a take offer of more than five billion pounds.
Speaker 3: And it's been really a fascinating saga to watch play
Speaker 3: out because we saw kind of massive shift in turn
Speaker 3: as we were going through those motions. So that first
Speaker 3: easy Jet was calling the approach by Castle Lake a
Speaker 3: highly opportunistic and seemed really intent on pushing back. But
Speaker 3: then this tone really started to shift as the office
Speaker 3: got sweeter and sweeter, and it seems that we got
Speaker 3: a deal now, so that sent the shares up massively
Speaker 3: this morning, as you say, almost up ten percent. And
Speaker 3: this deal will have consequences really beyond just the company
Speaker 3: specific news, so you know, it means the loss of
Speaker 3: yet another UK listed a company from the London Stock Exchange.
Speaker 3: It also might trigger a wave of more m and
Speaker 3: a more deals in the airline sector at a time
Speaker 3: when those companies are obviously struggling under the weight of
Speaker 3: lower consumer confidence and higher fuel costs. And this is
Speaker 3: something that has been talked about as well before from
Speaker 3: other CEOs within that space, about that potential deal wave
Speaker 3: that might come at this time for airlines. And so
Speaker 3: we saw actually shares up across the aviation industry this
Speaker 3: morning on the back of that, So we had the
Speaker 3: reader cross really across that sector.
Speaker 4: Yeah, okay, so that's in the airline business. Yes, interesting that,
Speaker 4: you know the tone shift in that story. Talis has
Speaker 4: agreed to buy a stake in Exale Tech and how
Speaker 4: investors reacting to this. This is also we've been on
Speaker 4: watch all of these defense names, haven't we.
Speaker 3: Yeah, absolutely, so, yeah, I agreed to buy Excel Technologies.
Speaker 3: That is a three point nine billion euro deal. Xcel
Speaker 3: is a company that makes underwater drone so it got
Speaker 3: an older last year of about four hundred million euros
Speaker 3: for mine hunting drones. So because of that, it had
Speaker 3: been quite an attractive target in that defense sector. So
Speaker 3: we had Sapphore actually, which is a competitor of Tellis
Speaker 3: as saying last month that it was in exclusive talks
Speaker 3: over a potential purchase of Excel for about two zero
Speaker 3: point two billion euros, but tell Us came in with
Speaker 3: a much higher offer than and one. There was some
Speaker 3: weakness actually in the share price for Talis this morning,
Speaker 3: and precisely for that reason because of that very steep
Speaker 3: price tag. Berkeley's analyst said that although this is quite
Speaker 3: an expensive deal, it does make strategic sense. So we
Speaker 3: might have a little bit of weakness today, but it
Speaker 3: might make more sense as that company is kind of
Speaker 3: integrated within Tellus.
Speaker 1: So it's finally Clarie a bit more m and a
Speaker 1: Continental set to sell its industrial unit loan start at
Speaker 1: four billion tell Us more.
Speaker 3: Yes, so Continent I agree to sell the Contitech, that
Speaker 3: unit that makes conveyor belts and air springs to the
Speaker 3: too lone Starle evaluation of four billion euros. So this
Speaker 3: completes the strategy for Continental of becoming a company that
Speaker 3: only makes tires and so you know listed the autoparts
Speaker 3: business or Movia recently. Now it's sold that contentech division,
Speaker 3: it means we now have a more streamlined version of Continental.
Speaker 3: So of course that is a focus on the most
Speaker 3: profitable unit, so it makes sense. But then you know
Speaker 3: that means also potentially a lack of diversification, which could
Speaker 3: be seen as putting Continental in maybe a bit of
Speaker 3: a vulnerable position, especially given the fact that the end
Speaker 3: markets are car makers and famously they're not having the
Speaker 3: best time right now. So we actually had some weakness
Speaker 3: in the Shap prize this morning for Continental on the
Speaker 3: back of that deal.
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