International Airlines Share News (IAG)

LONDON (Alliance News) - The following is a summary of top news stories Friday.
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COMPANIES
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Ryanair Holdings said its board has voted unanimously to accept International Consolidated Airlines Group's offer for its stake in Aer Lingus, removing the final barrier in the way of IAG's takeover bid and paving the way for the protracted transaction to go through. The British Airways owner made a EUR1.4 billion takeover offer for Aer Lingus late in 2014 and has already secured the Irish government's support for the bid, along with that of the Irish flag carrier's board. Ryanair said its board voted unanimously to accept the bid for its 29.8% stake in Aer Lingus, saying it thinks the takeover "maximises Ryanair shareholder value". In line with the decision, Ryanair will vote in favour of the motion at the upcoming Aer Lingus extraordinary general meeting to accept IAG's offer, subject to it securing European regulatory approval.
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InterContinental Hotels Group said it has agreed to sell its stake in the InterContinental Hong Kong to Supreme Key Ltd for USD938 million. IHG said Supreme Key is a consortium of investors advised and managed by Gaw Capital Partners, the Hong Kong-based investment house. IHG will retain a 37-year management contract for the hotel, with three ten-year extension rights. It expects to be paid management fees of around USD8 million a year, which will increase after a refurbishment of the five-star hotel on the Kowloon waterfront is completed.
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Property developer Hammerson said it has sold its stake in the Grand Maine shopping centre, located south west of Angers in France, to an unnamed French institutional investor for EUR63.2 million. The shopping centre has 8,600 square metres of retail space and was refurbished by Hammerson in 2013. It has a 95% occupancy rate and generates a gross rental income of EUR3.3 million a year.
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Medical devices company Smith & Nephew said it has struck a deal to acquire the Russian distribution and manufacturing business of DeOst LLC and DC LLC, a unit of Russian manufacturing company DeOst. Smith & Nephew did not provide any financial details on the deal but said that taking on the manufacturing business will help it to reach more customers in Russia following recent changes to state tender rules supporting Russian-produced products.
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BT Group upped the stakes in its battle with Sky as the head of its consumer arm called on UK media and communications regulator Ofcom to amend the scope of its Digital Communications Review to include pay-TV, claiming high prices and poor outcomes for consumers arise from a lack of competition in the sector. Speaking to the Broadcasting Press Guild on Thursday, BT Consumer Chief Executive John Petter drew comparisons between the UK broadband market and the pay-TV sector, hitting back at calls Sky has made recently for a break-up of BT and claiming this push is a "smokescreen" designed to obscure the failings in the pay-TV market, which Sky dominates.
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Sirius Minerals said it is "rapidly moving" to progress what will be the world's largest potash mine in Yorkshire after securing approval from authorities at the beginning of July. The North York Moors National Park Authority, which regulates the national park in Yorkshire where the potash mine is to be built, gave Sirius the green light to build the UK's first new potash mine in 40 years on July 1. Sirius said it is "now rapidly moving to the next phases of financing and construction" of the project, and aims to deliver the definitive feasibility study for the mine before the end of 2015 and secure the first tranche of financing in the first quarter of 2016.
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MARKETS
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London stock indices are posting broad gains mid-morning on optimism for a deal between Greece and its creditors, after the debt-ridden country submitted a new list of reforms, and following another positive session for Chinese stock markets.
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FTSE 100: up 1.2% at 6,660.37
FTSE 250: up 0.9% at 17,447.44
AIM ALL-SHARE: up 0.4% at 747.78
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The pound hit a three-day high against the dollar after data showed the UK trade deficit narrowing to its lowest since June 2013. The euro is up against the dollar on optimism that a deal can be reached for Greece to remain in the euro area.
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GBP: up at USD1.5486
EUR: up at USD1.1163

GOLD: up at USD1,163.03 per ounce
OIL (Brent): up at USD59.09 a barrel

(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Britain's trade deficit in goods in May was the smallest in nearly two years as imports declined and exports remained unchanged, data from the Office for National Statistics showed. The visible trade deficit for May was GBP8 billion, which was the smallest shortfall since June 2013. It also was smaller than the GBP9.7 billion deficit predicted by economists. In April, the trade deficit in goods was GBP9.4 billion. In May, imports of goods decreased by GBP1.4 billion to GBP32.6 billion, the lowest level since April 2011. Declines were seen in all the main commodity group imports and included a GBP0.5 billion decrease in imports of ships and a GBP0.4 billion fall attributed to material manufactures.
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In a move seen as Greece's final bid to remain in the euro area, the government placed a cash-for-reforms proposal before creditors on Thursday that comprises spending cuts and tax hikes in exchange for a third bailout, acceptance of which will pave the way for further negotiations between both sides. Prime Minister Alexis Tsipras' request for at least EUR53.5 billion bailout funds for the next three years will be presented in the Greek parliament for approval on Friday. Eurozone finance ministers will meet on Saturday at 3 pm local time in Brussels to review the Greek request. That is scheduled to be followed by a summit attended by 28 EU national leaders on Sunday to reach a final agreement, though a EU official said Friday morning that the summit may not take place on Sunday if agreement is reached with the Eurogroup finance ministers on Saturday.
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French President Francois Hollande said that Greece's latest offer of belt-tightening measures in return for a three-year loan are "serious and credible". Indicating his support for the Greek government, Hollande reinforced his position as a political ally of Prime Minister Alexis Tsipras' SYRIZA party ahead of weekend meetings in Brussels that will set the course for Greece's financial future. "The Greeks have shown their determination to remain in the eurozone," Hollande said, adding that "everything must be done to reach an agreement, a good agreement, an agreement that is respectful of European rules but also respectful of Greeks."
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Iran's chief diplomat, Mohammad Javad Zarif put the blame for the deadlock in nuclear talks squarely on his counterparts from six world powers as he started the 14th day of negotiations. Zarif reacted to warnings by US Secretary of State John Kerry, who said Thursday evening that he would walk away from the talks if Iran did not soon take the final steps to clinch the deal with Britain, China, France, Russia, the US and Germany, also known as the P5+1. "Unfortunately, some countries among the P5+1 have raised additional demands and have adopted a new stance," the Iranian foreign minister said. "This makes the negotiations difficult."
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EU interior ministers failed Thursday to meet a much-heralded goal of relocating 40,000 asylum seekers from Italy and Greece, but still hoped to achieve a breakthrough this month in response to a migration surge that has challenged Europe for months. "It's a very sensitive debate," said Luxembourg Immigration Minister Jean Asselborn, who chaired the talks since his country currently holds the EU's rotating presidency.
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French industrial output recovered as expected in May, the statistical office Insee reported. Industrial output grew 0.4% month-on-month in May, reversing a 0.8% fall in April. This was the fastest growth in three months. The monthly rate matched economists' expectations.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com; @ArvindBhunjun

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