European stock markets open higher
Traders work at the stock exchange in Frankfurt am Main, central Germany, on Sept. 18. AFP
London, United Kingdom—Europe’s main stock markets opened higher on Wednesday amid takeover activity in the brewing sector and a disappointing earnings update from Britain’s biggest retailer Tesco.
London’s benchmark FTSE 100 index rose 0.51 percent to 6,357.50 points compared with Tuesday’s close, with gains for heavyweight mining stocks helping to offset a fall for supermarket Tesco’s share price.
In the eurozone, Frankfurt’s DAX 30 climbed 0.66 percent to 9,968.56 points and the Paris CAC 40 grew 0.43 percent to 4,680.85.
The world’s biggest brewer, Anheuser-Busch InBev, announced Wednesday an improved 68-billion-pound (92- billion-euro) takeover offer for British rival SABMiller.
The Belgian-Brazilian giant, which brews Budweiser, Corona and Stella Artois, said it was disappointed that SABMiller had rejected its two previous lower-priced offers “without any meaningful engagement.”
Britain’s biggest retailer, supermarket group Tesco, said on Wednesday it had fallen into a net loss during its first half, partly on costs linked to an accounting scandal.
Losses after tax stood at 365 million pounds ($557 million, 494 million euros) in the six months to the end of August, compared with a net profit of 6.0 million pounds during the corresponding period a year earlier, Tesco said in an earnings statement.
In opening deals, Tesco shares were down 1.90 percent to 188.50 pence. SABMiller was up 2.76 percent to 3,722 pence, while AB InBev gained 2.74 percent to 100.75 euros.
The latest InBev offer stands at 42.15 pounds per SABMiller share.
