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Global Markets and Mergers: Key Takeaways from International Business News

Strategic Insights

— 2 min read

Global markets experienced fluctuations in light trading today, with Japanese stocks falling 34.62 points and the Nikkei closing at 13,770.44. Meanwhile, investors on Wall Street awaited crucial earnings reports from major U.S. companies after a long holiday weekend. In the defense industry, British Aerospace announced a $12.75 billion acquisition of Marconi, creating New British Aerospace, the world's third-largest defense giant. Additionally, AtHome Corp. agreed to acquire Excite Inc. in a $6.7 billion stock-swap transaction, aiming to accelerate broadband deployment and adoption.

Key Takeaways:

  • Japanese stocks fell 34.62 points, closing at 13,770.44, despite a long holiday weekend in the U.S.
  • British Aerospace's acquisition of Marconi for $12.75 billion will create New British Aerospace, the world's third-largest defense giant.
  • AtHome Corp.'s acquisition of Excite Inc. for $6.7 billion aims to accelerate broadband deployment and adoption by combining their technologies and distribution agreements.
  • Olivetti and Mannesmann were forced to raise their bid for Cellular Communications International by 22% to $2 billion after shareholders showed lukewarm interest in the initial offer.
  • Three bank companies, including Summit Bank, Bank One, and Capital One, reported gains in fourth-quarter earnings, with Summit Bank's overall earnings increasing 4.3% to $117.1 million.
  • Bank One's earnings before restructuring, merger, and other charges rose 17% to $1.04 billion, or 88 cents a diluted share.
  • Capital One's net earnings for the final three months of 1998 rose 3.9% to $72.7 million, with per-share net growing to $1.04 a share.

Statistics:

  • Nikkei closed at 13,770.44, falling 34.62 points.
  • British Aerospace's acquisition of Marconi for $12.75 billion will create a defense giant with a market value of $4.5 billion.
  • AtHome Corp.'s acquisition of Excite Inc. is valued at $6.7 billion, or $106.27 a share.
  • Olivetti and Mannesmann's revised bid for Cellular Communications International is worth $2 billion, a 22% increase from the previous offer.
  • Summit Bank's overall earnings for the fourth quarter rose 4.3% to $117.1 million.
  • Bank One's earnings before restructuring, merger, and other charges for the fourth quarter were $1.04 billion, or 88 cents a diluted share.
  • Capital One's net earnings for the fourth quarter were $72.7 million, with per-share net growing to $1.04 a share.

Sources:

  • COMTEX (http://www.comtexnews.com)
  • News Provided by COMTEX (http://www.comtexnews.com)

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