Micro Focus on HP Enterprise..

Thursday, 8 September: Indices in the UK were in the green as European bourses slipped lower on the back of the ECB announcement. The announcement disappointed investors, as rates were held at existing levels with no sign of extension to the quantitative easing program. The lack of stimulus hindered bourses in mainland europe, but this lent strength to the euro currency as Sterling slipped to a week low against the euro.
Dixons Carphone (+3.7%) had yet more good news for investors at its AGM today. The high street electronics retailer reported revenue growth of 9% year-on-year, as like-for-like revenues rose by 4% in the 13 weeks to 30th July. In the UK & Ireland revenues were 4% higher, 2% higher in the Nordics and 13% higher in Southern Europe on a like-for-like basis. No detrimental impact on trade had been detected as a result of the EU referendum.
Microfocus surged over 14.0% higher after it agreed a merger with the software arm of Hewlett Packard Enterprise in a deal which will value the combined company at US$8.8bn. Micro Focus, which joined the FTSE 100 after chip designer ARM Holdings’ shares were cancelled this week, will pay US$2.5bn to acquire the business. HP Enterprise shareholders will then own 50.1% of the combined company. The deal is expected to close in Q3 2017.
At the close European indices were mixed with the FTSE 100 +0.18%, the CAC 40 -0.34%, and the DAX 30 -0.72%.

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