Inmarsat Falls out of Orbit Following Eutelsat Snub

Tuesday, June 26: Indices in Europe had a better day following a dire start to the week, lifted by a rebound in basic materials, oil and engineering stocks with the FTSE 100(+0.37%) a key beneficiary. The appetite for safe assets continued across the Atlantic after the close in London yesterday, as the S&P 500 and the Nasdaq experienced the steepest losses in 2 months due to rising trade tensions. Early US trade today was indicative of a resurgence as US technology shares rose alongside General Electric Co., after the conglomerate announced it would spin off healthcare and oil-services entities.

Carpetright(-1.22%) issued FY18 results in which the business swung to a loss for the 2018 financial year due to an ongoing restructuring of the business and implementation of a company voluntary agreement. The Group reported a pretax loss of £70.5m, compared with a pretax profit of £900,000 the year before, with the loss driven by exceptional costs of up to £61.8m. Exceptional items included a £34.7m impairment of goodwill relating to historic acquisitions of UK & Dutch businesses, alongside restructuring and strategy costs, which feature store closures and redundancy provisions. UK revenue slid 5.4% to £360.4m, as the number of stores also declined by 16 to 410.The early stages of June saw the Group implement the CVA after raising £60m via a placing and open offer, part of which will see 92 store closures but the avoidance of administration. The first eight weeks of the new financial year have been hit by disruption in the form of stock shortages, and exceptionally warm weather impacting trade.

Inmarsat(-11.97%) fell after its brief flirtation with a takeover came to an end. Less than 24 hours passed from the announcement of possible interest from a French satellite rival to a further statement declaring Eutelsat no long intends to make an offer for the company. Earlier in June, Inmarsat confirmed it had received a preliminary merger proposal from US peer Echostat Corp, which was subsequently rejected.

Across Europe, indices were mixed at the close with the FTSE 100 +0.37%, the DAX 30 -0.29% and the CAC 40 -0.05%.

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