WEBVTT - Arcadis Drops, Valeo Up. KWS Falls

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<v Speaker 1>Bloomberg Audio Studios.

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<v Speaker 2>Podcasts. Radio. News. The Stock Movers Report. Your roundup of

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<v Speaker 2>companies making moves in the stock market. Harnessing the power

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<v Speaker 2>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.

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<v Speaker 3>I'm Lizzie Burden with Stephen Carroll, and we're joined by

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<v Speaker 3>Bloomberg reporter Chloe Melly. Chloe, let's start with Arcadis, some

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<v Speaker 3>M &amp; A- related moves.

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<v Speaker 1>What's the latest there?

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<v Speaker 3>Yeah. So, Arcadis is a Dutch engineering company, and it

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<v Speaker 3>has been the target of a takeover offer by a

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<v Speaker 3>Canadian engineering company called WSP. And WSP submitted two bids

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<v Speaker 3>over the course of the last couple of months. But now,

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<v Speaker 3>it has actually withdrawn fully its offer for Arcadis, saying

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<v Speaker 3>that the company had refused to engage. And Arcadis said

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<v Speaker 3>separately that the two WSP offers fundamentally undervalued the company.

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<v Speaker 3>And so, that is weighing on the shares for Arcadis

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<v Speaker 3>today massively.

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<v Speaker 1>We are seeing the shares down quite significantly.

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<v Speaker 3>And that has sent a market value well below the

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<v Speaker 3>latest offer price, actually, from WSP. So, the reasoning behind

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<v Speaker 3>the deal that WSP had provided originally was that it

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<v Speaker 3>would have been a way to kind of accelerate tech

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<v Speaker 3>innovation by bringing those two companies together, especially when it

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<v Speaker 3>comes to AI and and also expand the geographic footprint

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<v Speaker 3>by quite a lot. But Arcadis said that it remained

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<v Speaker 3>convinced that its strategy and its outlook were solid without

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<v Speaker 3>having any kind of deal. And we've seen actually WSP

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<v Speaker 3>shares rising after saying that it will not be pursuing

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<v Speaker 3>this deal anymore. So, maybe everyone is happy except for

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<v Speaker 3>those Arcadis shareholders.

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<v Speaker 2>Okay. So, from Arcadis, we're going to go to France

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<v Speaker 2>next and the auto parts maker Valeo. What have we

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<v Speaker 2>heard from them?

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<v Speaker 3>Yes. So, Jefferies upgraded the company today, saying that it

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<v Speaker 3>had a very strong market positioning. And overall, the analysts

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<v Speaker 3>at Jefferies expect the auto parts sector in Europe to

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<v Speaker 3>be quite resilient in the upcoming earnings season. And it

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<v Speaker 3>will be quite interesting to see how the performance of

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<v Speaker 3>those car parts makers improves. and the performance of the

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<v Speaker 3>carmakers themselves will potentially diverge over the course of the

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<v Speaker 3>earnings season.

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<v Speaker 1>Of course, we've already had Volkswagen.

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<v Speaker 3>Coming out with this huge profit warning just a few

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<v Speaker 3>days ago.

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<v Speaker 1>And the earnings.

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<v Speaker 3>Season that's now fast approaching will likely have some of

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<v Speaker 3>those very similar themes for that sector.

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<v Speaker 1>We've got this weak pricing.

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<v Speaker 3>We've got Chinese rivals making headway into the European market.

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<v Speaker 3>And then investment in EVs also kind of hurting profitability

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<v Speaker 3>for a lot of those companies. But the car parts

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<v Speaker 3>makers themselves are actually a bit more, a bit better

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<v Speaker 3>kind of insulated against those challenges. You know, they sell

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<v Speaker 3>to all kinds of car makers, not only the European ones,

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<v Speaker 3>and then also they sell to aftermarket suppliers. So, they've

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<v Speaker 3>got a more sort of diverse revenue stream and that

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<v Speaker 3>is helping to protect them a little bit more from

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<v Speaker 3>some of those obstacles.

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<v Speaker 1>And finally, Chloe, KWS, not quite seeds of optimism.

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<v Speaker 3>Yes, KWS, another niche company that I found for you guys. So,

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<v Speaker 3>seed producer makes seed for cultivating grains, sugar beets, potatoes, etc. So,

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<v Speaker 3>It said this morning that, well, it had quite disappointing

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<v Speaker 3>earnings this morning, and it was not very upbeat on

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<v Speaker 3>its outlook. And it said that the last year had

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<v Speaker 3>showed just how strained the environment for agriculture remains worldwide.

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<v Speaker 1>And it cited climate change. Of course, that means losing

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<v Speaker 1>a lot of.

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<v Speaker 3>Crops to environmental disaster, to disease. And then also mentioned

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<v Speaker 3>those volatile agricultural markets more generally. We know, of course,

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<v Speaker 3>that a lot of fertilizer travels through the Strait of Hormuz.

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<v Speaker 3>There's been quite a lot of disruption there in those markets.

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<v Speaker 3>And so, analysts said that all of that had really

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<v Speaker 3>weighed on the performance with sales below expectations and then

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<v Speaker 3>guidance also falling short of estimates. So, it's not very

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<v Speaker 3>encouraging for that sector and we've seen the shares drop

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<v Speaker 3>a fair bit this morning for

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<v Speaker 2>Kws the stock movers report from bloomberg radio check back

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