EUROPE MARKETS: European Shares Fall As Bayer, Fiat Come Under Pressure
May 23 2016 - 4:08AM
Dow Jones News
By Carla Mozee, MarketWatch
Bayer drops after $62 billion bid for Monsanto
European stocks slipped Monday, opening the week with shares of
Germany's Bayer AG falling after bidding for chemicals heavyweight
Monsanto Co.
The Stoxx Europe 600 fell 0.6% to 335.98, giving back a portion
of Friday's 1.2% rise
(http://www.marketwatch.com/story/european-shares-rise-as-oil-prices-gain-2016-05-20)
that locked in a second straight weekly gain for the pan-European
index.
Shares of Bayer AG (BAYN.XE) dropped 3.2% after the drug and
chemicals maker said it made an all-cash offer to buy Monsanto Co.
(MON) for $62 billion, or $122 a share
(http://www.marketwatch.com/story/bayer-makes-62-billion-bid-to-take-over-monsanto-2016-05-23).
The bid values Monsanto at 37% over the company's May 9 closing
share price, the day before it made a written proposal to the U.S.
company, said Bayer.
Shares of Fiat Chrysler Automobiles NV (FCA.MI) were down 5%
after a report by German newspaper Bild that German regulators
suspect the auto maker of using illegal software to cheat on
emissions tests. Fiat last week declined to meet with regulators to
discuss the issue.
On a broader scale, investors will look for the first reading of
the eurozone purchasing managers' index for May, for both services
and manufacturing. The data is scheduled for release at 9 a.m.
London time, or 4 a.m. Eastern Time.
The flash reading on Germany's composite PMI for May showed a
rise to 54.7, a five-month high. The preliminary manufacturing PMI
for May was up to 52.4, also a five-month high, beating a 52
forecast from FactSet. The services PMI was up to 55.2, a
three-month high and topping estimates of a 54.6 reading.
Indexes: In Frankfurt, Germany's DAX 30 fell 0.8% to 9,839.37,
and Italy's FTSE MIB was down 2.8% to 17,313.35.
France's CAC 40 dropped 1% to 4,311.90, and the U.K's FTSE 100
lost 0.4% to 6,133.17.
The euro was up 0.1% at $1.1234.
(END) Dow Jones Newswires
May 23, 2016 03:53 ET (07:53 GMT)
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