Irish companies among worst FTSE 100 performers as Dublin closes for holiday

Dublin-based companies Smurfit Kappa, Shire and Paddy Power counted among the five worst performers on the FTSE 100 even as major markets moved ahead on Monday while Irish investors enjoyed the Bank Holiday.

European shares extended a recovery on Monday as dealmaking took centre stage after a week of political tension in Italy and Spain, as well as friction between the United States and its allies over trade policies. Europe’s STOXX 600 gained 0.3 per cent, while the FTSE 100 advanced 0.5 per cent.


Smurfit Kappa closed down 7.2 per cent at £28.80 in London, having slid by as much as 7.5 per cent during the session, as hopes faded that the group’s unwanted US suitor International Paper would mount a third bid for the company before a deadline on Wednesday morning.

Shire was also out of sorts, declining by 2.3 per cent to £39.43. The stock has been unloved since a number of major shareholders in Japanese group Takeda, which agreed to buy the Irish-based drugs group last month for £45.3 billion (€51.6bn), started to agitate last week for investor approval for major deals.

Paddy Power dipped 0.8 per cent to £89.65, as it took a breather following a strong surge recently as the group agreed to merge its US unit with website FanDeal to take advantage of an expected rise in sports betting following a ruling by the country’s supreme court last month legalising sports gambling in all states. The stock had also been underpinned by a share buy-back which was launched last week.

UK-based packaging group DS Smith – a rival of Smurfit Kappa – rose 2.8 per cent after it offered to buy Spanish rival Europac for an enterprise value of €1.9 billion to strengthen its business in western Europe and its supply chain.


Read More Here...

Bookmark the permalink.