STOCKS NEWS EUROPE-Pace falls on concerns over AT&T and DirecTV deal report

Fri May 2, 2014 7:59am EDT

May 2 (Reuters) - Shares in British set-top box maker Pace Plc fall as much as 5.6 percent, making it the top percentage loser on Britain's mid-cap FTSE 250 index, after a report saying AT&T has approached DirecTV about a possible purchase of the satellite TV company.

Pace, which supplies decoders to both companies, derived more than half of its revenue from North America in 2013.

"Pace is a provider to both ... I guess perhaps there are order uncertainties in the near term," Jefferies analyst Lee Simpson says.

Worries over the impact of any such merger on the supply chain and order book has been driving the market, Simpson adds.

The company said last month it expected revenue to increase by about 9.3 percent in 2014, while its operating margin would be about 8.5 percent, up from 7.8 percent in 2013.


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