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Let's take a look at some of the stocks on the move today in Europe. I'm Lizzie Burden with Caroline Hepka. I'm re joined by our Bloomberg reporter, Chloe Melly. Chloe, good morning. Let's start off with UniCredit, the Italian lender up this morning after Germany rejected its takeover bid for Comets Bank. Just tell us more.
Yeah, absolutely, So this is really the latest in this ongoing Commerce Bank Uniticredit saga. So, as you said, Germany rejected that takeover bid, saying that the offer does not include an appropriate premium and also that Commerce Bank has a very important role to play in the domestic economy and partly through, for example, the jobs that it creates in Frankfurt, where it's really a really big employer, which
means that it actually must keep its independence. So that's what the German government is say, and it's not surprising to hear about this rejection. Germany has been very opposed to this potential takeover since twenty twenty four when UniCredit first took a stake and first made its approach.
So the story is not done yet though.
We have this full blown takeover offer that UniCredit made in March that will actually likely receive a two week extension until July third, so we'll have to keep an eye on that. And what's interesting is that for a while the implied value of the offer was below the market value of commers Bank, but now the discount has narrowed quite a bit, so we'll see how shareholders think
about that. But while we wait for the next steps, UniCredit shares are up this morning and commers Bank a little bit weaker.
Yeah, it's really interesting, isn't it. This important kind of cross border deal, whether it actually gets done or now, it's going to be a massive test for Europe and maybe for other similar situations. You know, think about the Mario Draky reports. Is meant to be one European kind of continent competing globally anyway. Rathbones in the UK, this is the wealth manager facing an FCA review.
Why Yeah, a huge, huge palulenge this morning for the wrath Bone shares. So it said that it expects sixty million pounds of additional cost over the next two years to address the findings from a regulator review from a review from the FCA that identified areas of improvement regarding how it implements consumer duty guidelines for its consumers and then also found deficiencies in aspects of coliant compliance, oversight
and assurance arrangements. And so that means that Wrathbones has to make changes now to its procedures and that it will stop onboarding new clients for twelve months until it has done that.
Of course that's going to have a financial impact.
It's already said that that will hit profit by about nine million pounds for this year. But the bigger impact is of course going to be around trust for that company and for maybe the broader wealth management industry in the UK as well.
And today ray Matal Shares are on a new South Korean joint venture.
Kloe yeah So Mitaal and the South Korean company LIG Defense and Aerospace have agreed to establish a strategic partnership to provide air defense systems for the European countries and the Native territories as well. So the two companies will co develop new missiles and new capabilities for.
Those air defense systems.
So that's a very company specific boost that we're getting for Ryan Mattau, but then there's a broader context that's really helping that defense sector in general. This morning, so we had the fifteen billion eurolone agreement for defense between the EU and France yesterday, and then of course there's this G seven summit happening right now with a lot of discussion around Ukraine, around the Middle East, and of course that puts defense into the heart of that global agenda.
There's still a lot to be worked out with the situation in Iran.
Keep saying that things will get.
Better than the stranghormies will reopen by Friday.
Eliza in Europe are not so sure.
So all of this uncertainty that's leading Ryan Mattau, but also other names in that sector like Sabon Ba higher this morning all.
In the green.
There the Stockmover's Report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street and for the latest market moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg dot com, and on Applecarplay and Android Auto with the Bloomberg Business app