Pawel Kopczynski LONDON A raft of well-received updates and a recovery in resources stocks helped European shares rebound early on Tuesday from the previous session’s slight losses, although shares in Micro Focus dropped.
Traders work in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany, May 8, 2017.
Britain’s Micro Focus was the biggest STOXX faller, slumping more than 12 percent after saying that revenue at Hewlett-Packard Enterprise, the U.S. company it is buying, dropped around 10 percent in the last quarter.
Elsewhere company results were in focus, with shares in Denmark’s Nets rising 2.7 percent following its first quarter earnings, and potash miner K+S also up 2 percent after its update.
A rebound in basic resources stocks and gains among energy firms also helped support the market, with miners up after a rise in the underlying price of copper.
as informed in
Micro Focus International PLC shares fall 11% after it sounds alert over HPE Software revenues
Having received the necessary regulatory sign-offs, Micro Focus expects the takeover of HPE Software to complete in September – a full year after the deal was first announced.
“Whilst the short term decline in licence [revenue] is disappointing it is not unusual given the level of change being undertaken,” he added.
The company is currently implementing an efficiency programme at HPE and early progress has been “encouraging”, according to chairman Kevin Loosemore.
Micro Focus said it would convene a general meeting to request approval of the transaction shortly.
At 8.30am the shares were down 311p at £23.28, valuing the business at £5.5bn.
as informed in
REUTERS/Eddie Keogh LONDON Shares in British tech firm Micro Focus plunged on Tuesday after revenues at Hewlett-Packard Enterprise’s software business, which it is buying, fell in the last quarter.
A sign stands outside the offices of Micro Focus in Newbury, Britain, September 8, 2016.
“We expect the decline in HPE Software revenues will introduce some uncertainty around medium term revenue growth.”
Micro Focus said its revenue for the year to end-April was expected to be within its guidance of flat to down 2 percent on a pro-forma constant currency basis.
Analysts at Citi said that HPE Software’s quarterly performance was disappointing, although it expected Micro Focus to change the emphasis of the business.