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Opening Bell: Dermot Desmond doubles down, VW issues an Irish warning, German growth stays on track

Dermot Desmond has vowed to continue to fight against Ladbrokes’ proposed merger with ...
Newstalk
Newstalk

07.28 25 Nov 2015


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Opening Bell: Dermot Desmond d...

Opening Bell: Dermot Desmond doubles down, VW issues an Irish warning, German growth stays on track

Newstalk
Newstalk

07.28 25 Nov 2015


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Dermot Desmond has vowed to continue to fight against Ladbrokes’ proposed merger with Gala Coral, even though shareholders voted overwhelmingly to back the deal.

He owns 2.8% of Ladbrokes and is going against a 96% majority who have supported the merger plans.

Tomorrow he is expected to ask the hearings committee of the London Stock Exchange Takeover Panel to put the deal to a second meeting - on the grounds that Ladbrokes failed to publish some information relating to the transaction in documents which were sent to shareholders in October.

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“This is only the first round of 15 rounds, or 10 rounds or seven rounds," he said after the meeting.

Adding, "There's a long way to go."

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Volkswagen Group Ireland has warned its dealers that if they fail to notify people who buy diesel vehicles which have been affected by the company's emission cheating scandal that the car's emission readings may be incorrect, they could face "criminal prosecution and civil liability."

Today's Irish Times reports that it has seen a correspondence in which the group's managing director told dealers that buyers must be made aware of the "potential irregularities which may exist" between vehicle's stated emission levels and their actual emissions and fuel consumption.

He adds that the risk of running into legal difficulties can be eliminated, "if you are able to provide evidence that you had no intention to deceive the customer or carry out any fraud."

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New figures from Germany suggest that the country's economy has not been negatively affected by the Volkswagen emissions scandal or this month's terror attacks in Paris.

Domestic demand increased by 0.7% in the three months to the end of September according to new figures from its Federal Statistics Office.

The economy grew by 0.3% - in line with estimates - as imports increased by 1.1%, exports rose by 0.2% and capital investment fell by 0.3%.

German economic growth for 2015 is expected to run at 1.7% this year, increasing to 1.8% next year.

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Economic growth in the United States has been revised upwards for the third quarter to 2.1%.

The improvement was related to revised inventory data which showed that businesses had been restocking at a faster pace than initially expected.

Although the country's consumption levels were also revised downwards.

This updated economic data will be considered when the Federal Reserve meets in December to decide if it will raise its baseline interest rate.


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