Vodafone Share News (VOD)

LONDON (Alliance News) - Shares in London are called to open slightly higher on Wednesday as traders digest US President Donald Trump's decision to withdraw from the Iran nuclear deal."Despite a big build up to the announcement the markets have pretty much shrugged off the news, with Europe pointing to a rather lacklustre start," says Jasper Lawler, head of research at London Capital Group.In early UK company news on Wednesday, Vodafone confirmed it has agreed to buy Liberty Global's operations in Germany, the Czech Republic, Hungary and Romania, while Imperial Brands and Compass both reported a fall in interim operating profit.IG says futures indicate the FTSE 100 index of large-caps to open 8.45 points higher at 7,574.20 on Wednesday. The FTSE 100 index closed flat at 7,565.75 on Tuesday.FTSE 100-listed telecommunications firm Vodafone said it has agreed to acquire Liberty Global's operations in Germany, the Czech Republic, Hungary and Romania for an enterprise value of EUR18.4 billion.This is expected to comprise EUR10.8 billion in cash paid to Liberty Global and assumption of EUR7.6 billion in existing Liberty debt, subject to completion adjustments. Liberty's operations include Unitymedia in Germany, UPC Czech, UPC Hungary and UPC Romania."The combination of Vodafone and Unitymedia's non-overlapping regional operations will establish a strong second national provider of digital infrastructure in the German market," Vodafone said.Meanwhile, in the Czech Republic, Hungary and Romania the deal will complement Vodafone's existing operations. In these markets, Vodafone said, the combined businesses will reach over 6.4 million homes and will serve 15.8 million mobile, 1.8 million broadband and 2.1 million TV customers.Estimated cost and capital expenditure synergies of approximately EUR535 million per year - before integration costs - are expected by the fifth year post completion of the dealVodafone said it intends to finance the acquisition using existing cash, new debt facilities and around EUR3 billion of mandatory convertible bonds. "This transaction will create the first truly converged pan-European champion of competition. It represents a step change in Europe's transition to a Gigabit Society and a transformative combination for Vodafone that will generate significant value for shareholders," said Vodafone Chief Executive Vittorio Colao.Elsewhere among London blue-chips, tobacco giant Imperial Brands said interim revenue dipped 0.1% to GBP14.23 billion from GBP14.30 billion a year before as operating profit slipped 7.6% to GBP883 million from GBP902 million.However, the firm upped its dividend 10% to 56.87p from 51.70p.Total tobacco volume growth in the period totalled 123.6 billion stick equivalents, down 2.1% on last year's 126.3 billion. Growth Brand volume was up 6.3% to 77.6 billion stick equivalents."We expect a considerably stronger second half with further share gains and improving price/mix momentum. As a result we expect a stronger tobacco revenue performance in H2, particularly in Returns and Growth Markets, with more modest growth in the US." Imperial said.The FTSE 100-listed company said it is on track to deliver its 2018 expectations.Caterer Compass said revenue for the six months to March 31 fell 0.8% to GBP11.4 billion, while operating profit dipped 2.7% to GBP853 million. The company declared an interim dividend of 12.3 pence, up 9.8% on last year's 11.2p.The company said it saw organic revenue growth of 4.8% in the period, and excluding the impact of Easter and weather this was up 5.3%. Compass said its operating margin of 7.5% in the period was as expected, though this was 10 basis points lower than the 7.6% posted last year."Compass had another strong half with good revenue growth. North America continues to make excellent progress with broad-based growth across sectors. Performance in Europe was mixed, with good growth in the UK, offset by subdued trading in Continental Europe. Notably, the performance in our Rest of World region is improving," said Chief Executive Dominic Blakemore."Our continuous focus on efficiencies and pricing was offset by inflation and cost of change actions in the UK. As a result, our group operating margin declined slightly in the half. However, the benefits of these actions will come through in the second half," Blakemore added.Travel operator TUI said turnover rose 7.2% to EUR6.81 billion for its half year to March 31, as its underlying earnings before interest, tax, depreciation and amortisation loss narrowed to EUR158.6 million from EUR214.3 million a year before.Trading for summer 2018 continues to "fully meet" expectations, TUI said, with demand for Spain remaining strong. The company said there has been "particularly strong growth" in bookings recorded for Turkey, North Africa and Greece.Groupe Bruxelles Lambert said it, and its wholly owned subsidiary GBL Energy, has sold its entire 6.6% stake in Burberry. The sale, first announced after the market close on Tuesday, was conducted via an accelerated bookbuild. Proceeds from the disposal amounted to approximately GBP498 million."The divestment of this stake is part of GBL's dynamic strategy in terms of portfolio diversification and allows it to realize a capital gain," GBL said.In the FTSE 250, JD Wetherspoon said like-for-like sales in the third quarter, or the 13 weeks to April 29, were up 3.5%, with total sales up 2.8%. Year-to-date like-for-like sales rose 5.2% with total sales up 3.8%."The third quarter last year included the early May bank holiday, but the third quarter this year did not, which is likely to have reduced like-for-like sales by about 0.5% in the period," the pub operator noted.Wetherspoon said it continues to expect its full-year results in line with expectations."As anticipated, the rate of like for like sales growth slowed slightly in the third quarter. We continue to face significant cost increases in the second half in areas which include labour, business rates and the sugar tax. There is also some uncertainty as to the effect on sales of the FIFA World Cup," said Chairman Tim Martin. Subprime lender Provident Financial said its Vanquis Bank delivered profit "ahead of plan" in the first quarter, with the company's overall recovery plan on track and the Home Credit business delivering a good collections performance.Provident said Home Credit's collections performance during the "important" first quarter of the year continued its "progressive improvement". The shortfall in underlying performance against historic levels narrowed to 10% at March from 12% at December 2017. Collections performance is expected to return to historic levels during the first half of 2019, Provident added.Motor finance division Moneybarn delivered strong growth, the company said, with first quarter new business volumes growing 10% year-on-year growth."I am very pleased with the operational and financial performance of the group during the first quarter of the year and we are on-track to deliver results for 2018 in line with internal plans," said Chief Executive Malcolm Le May.In the US on Tuesday, Wall Street ended flat following Trump's Iran announcement, with the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all broadly unchanged.Trump said Tuesday the US will quit the "decaying and rotten" 2015 nuclear deal with Iran, breaking with Washington's closest allies.Germany, France and Britain said in a joint statement that they will "remain parties" to the agreement, while Iranian President Hassan Rowhani said that Tehran also will work to uphold it.Trump called the agreement "defective at its core" as he announced his decision to exit the deal and immediately reinstate economic sanctions against Iran.The agreement - sealed by Trump's predecessor, president Barack Obama, with the support of China, Russia, Germany, France and Britain - eased sanctions on Tehran in exchange for commitments to halt what Western powers feared was a nuclear weapons programme."Oil markets experienced a roller coaster session in the lead up to the announcement amid rumours and second guessing as to what Trump's decision would be. After falling 3% on false reports that Trump was looking to remain in the deal, crude rallied hard across the rest of the session," LCG's Lawler says.Brent oil was quoted at USD76.48 a barrel early Wednesday - having hit a high of USD76.73 overnight, its best price since late 2014 - up from USD74.15 at the London equities close on Tuesday.In Asia on Wednesday, the Japanese Nikkei 225 index closed down 0.4%. In China, the Shanghai Composite is down 0.2%, while the Hang Seng index in Hong Kong is up 0.3%.In the UK, the British Retail Consortium said like-for-like sales in the UK tumbled 4.2% on year in April, worse than the 0.8% decline forecast by economists. This follows a 1.4% rise in March.Non-food items slide 4.9% in the three months to April and dropped 2.9% on year. Online sales advanced 6.7% on year, slowing from 10% growth in the previous month.Still to come in the economic events calendar on Wednesday, Italy's retail sales are at 0900 BST and US producer prices at 1330 BST.