May 14, 2018 / 7:35 AM / a year ago

M&A shakes up European shares as bid targets IWG, EDP soar

(For a live blog on European stocks, type LIVE/ in an Eikon news window)

LONDON, May 14 (Reuters) - European shares edged down in early deals on Monday after a strong run of weekly gains, while dealmaking livened up trading with Britain’s IWG and Portugal’s EDP both surging higher on takeover offers.

Oil stocks were the worst-performing as crude prices fell away from multi-year highs due to a surge in U.S. drilling activity and resistance in Europe and Asia to U.S. sanctions against Iran.

The STOXX 600 oil & gas index fell 0.4 percent, while the broad pan-European index hovered near flat.

Italy’s FTSE MIB rose 0.2 percent as investors shrugged off progress in government-forming talks between the anti-establishment 5-Star Movement and the far-right League.

Shares in IWG shot up 21.3 percent after the British serviced office provider said it had been approached for a takeover by three rival suitors.

EDP shares climbed 8.8 percent after China’s state-owned utility China Three Gorges offered $10.8 billion to take control of the Portuguese power firm.

In results-driven moves, Dutch bank ABN Amro fell 4.6 percent after reporting a drop in first-quarter net profit due to ongoing problems in the oil sector leading to impairments on loans to shipping and offshore services clients.

Shares in Swedish property and investment company Lundbergs halved in price after a bonus 1:1 issue doubling the number of shares in the company. (Reporting by Helen Reid; Editing by Julien Ponthus)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below