WEBVTT - EasyJet Soars, Thales Rises, Continental Dips

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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 1>Now, let's take a look at some of the stocks

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<v Speaker 1>on the move today in Europe. I'm Lizzie Burden with

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<v Speaker 1>Caroline Hepcat and were joined by Bloomberg reporter Chloe Melly.

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<v Speaker 1>Happy Monday, Chloe, Happy Monday. It's a happy Monday for

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<v Speaker 1>EasyJet as well. Up nine point five percent off the

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<v Speaker 1>back of this Castle Lake bid successful. Finally, what's different now?

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<v Speaker 3>Yeah, so, as you say, after weeks of playing hard

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<v Speaker 3>to get easy Jet as finally said yes, So it's

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<v Speaker 3>agreed in principle to the fifth takeover bid by Castle Lake,

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<v Speaker 3>which is a take offer of more than five billion pounds.

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<v Speaker 3>And it's been really a fascinating saga to watch play

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<v Speaker 3>out because we saw kind of massive shift in turn

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<v Speaker 3>as we were going through those motions. So that first

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<v Speaker 3>easy Jet was calling the approach by Castle Lake a

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<v Speaker 3>highly opportunistic and seemed really intent on pushing back. But

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<v Speaker 3>then this tone really started to shift as the office

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<v Speaker 3>got sweeter and sweeter, and it seems that we got

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<v Speaker 3>a deal now, so that sent the shares up massively

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<v Speaker 3>this morning, as you say, almost up ten percent. And

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<v Speaker 3>this deal will have consequences really beyond just the company

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<v Speaker 3>specific news, so you know, it means the loss of

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<v Speaker 3>yet another UK listed a company from the London Stock Exchange.

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<v Speaker 3>It also might trigger a wave of more m and

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<v Speaker 3>a more deals in the airline sector at a time

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<v Speaker 3>when those companies are obviously struggling under the weight of

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<v Speaker 3>lower consumer confidence and higher fuel costs. And this is

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<v Speaker 3>something that has been talked about as well before from

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<v Speaker 3>other CEOs within that space, about that potential deal wave

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<v Speaker 3>that might come at this time for airlines. And so

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<v Speaker 3>we saw actually shares up across the aviation industry this

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<v Speaker 3>morning on the back of that, So we had the

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<v Speaker 3>reader cross really across that sector.

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<v Speaker 4>Yeah, okay, so that's in the airline business. Yes, interesting that,

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<v Speaker 4>you know the tone shift in that story. Talis has

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<v Speaker 4>agreed to buy a stake in Exale Tech and how

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<v Speaker 4>investors reacting to this. This is also we've been on

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<v Speaker 4>watch all of these defense names, haven't we.

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<v Speaker 3>Yeah, absolutely, so, yeah, I agreed to buy Excel Technologies.

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<v Speaker 3>That is a three point nine billion euro deal. Xcel

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<v Speaker 3>is a company that makes underwater drone so it got

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<v Speaker 3>an older last year of about four hundred million euros

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<v Speaker 3>for mine hunting drones. So because of that, it had

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<v Speaker 3>been quite an attractive target in that defense sector. So

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<v Speaker 3>we had Sapphore actually, which is a competitor of Tellis

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<v Speaker 3>as saying last month that it was in exclusive talks

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<v Speaker 3>over a potential purchase of Excel for about two zero

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<v Speaker 3>point two billion euros, but tell Us came in with

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<v Speaker 3>a much higher offer than and one. There was some

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<v Speaker 3>weakness actually in the share price for Talis this morning,

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<v Speaker 3>and precisely for that reason because of that very steep

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<v Speaker 3>price tag. Berkeley's analyst said that although this is quite

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<v Speaker 3>an expensive deal, it does make strategic sense. So we

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<v Speaker 3>might have a little bit of weakness today, but it

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<v Speaker 3>might make more sense as that company is kind of

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<v Speaker 3>integrated within Tellus.

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<v Speaker 1>So it's finally Clarie a bit more m and a

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<v Speaker 1>Continental set to sell its industrial unit loan start at

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<v Speaker 1>four billion tell Us more.

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<v Speaker 3>Yes, so Continent I agree to sell the Contitech, that

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<v Speaker 3>unit that makes conveyor belts and air springs to the

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<v Speaker 3>too lone Starle evaluation of four billion euros. So this

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<v Speaker 3>completes the strategy for Continental of becoming a company that

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<v Speaker 3>only makes tires and so you know listed the autoparts

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<v Speaker 3>business or Movia recently. Now it's sold that contentech division,

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<v Speaker 3>it means we now have a more streamlined version of Continental.

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<v Speaker 3>So of course that is a focus on the most

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<v Speaker 3>profitable unit, so it makes sense. But then you know

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<v Speaker 3>that means also potentially a lack of diversification, which could

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<v Speaker 3>be seen as putting Continental in maybe a bit of

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<v Speaker 3>a vulnerable position, especially given the fact that the end

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<v Speaker 3>markets are car makers and famously they're not having the

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<v Speaker 3>best time right now. So we actually had some weakness

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<v Speaker 3>in the Shap prize this morning for Continental on the

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<v Speaker 3>back of that deal.

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