ASX 200 (ASX:XJO) midday update: AGL rejects takeover offer, A2 Milk shoots higher

Here's what is happening on the ASX 200 today…

James Mickleboro

Author Bio James Mickleboro is an investment writer and analyst who has worked with The Motley Fool Australia for 10 years, covering ASX shares, market news, broker research, dividends, growth stocks, and long-term investing ideas. Over that time, James has written extensively about Australian equities and developed a particular focus on helping everyday investors understand the stories behind share price moves, company announcements, broker views, and broader market trends. His best investment recommendation was identifying Afterpay while it was still a small-cap growth share, before its rise into one of Australia’s biggest technology success stories. His worst investment lesson came from CSL Ltd (ASX: CSL), where he was burnt by believing management could turn the business around sooner than the market ultimately allowed. Areas of Expertise ASX shares Growth and dividend investing Broker research Interpreting company announcements Market news Portfolio strategy Long-term wealth creation Education Bachelor of Politics, Philosophy and Economics. CFA Institute Social Media LinkedIn Favorite Investment Quote "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett

Published February 21, 2022 12:02 pm AEDT

At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decline. The benchmark index is currently down 0.6% to 7,180.6 points.

Here's what is happening on the ASX 200 today:

A woman looks quizzical as she looks at a graph of the share market. — Image source: Getty Images

AGL takeover offer rejected

The AGL Energy Limited (ASX: AGL) share price is jumping today after it received and rejected a takeover approach. AGL received an unsolicited, preliminary, non-binding indication of interest from a consortium led by Brookfield Asset Management and Atlassian co-founder Mike Cannon-Brookes' private investment firm, Grok Ventures. However, at $7.50 per share, AGL believes the offer undervalues the company. It intends to push ahead with its demerger plans instead.

Altium shares sink on half year results

The Altium Limited (ASX: ALU) share price is sinking today after the release of its half year results. The electronic design software provider reported a 28% increase in revenue to US$102 million and a 38% lift in net profit after tax to US$23 million. It appears to be the company's guidance that has disappointed. While management now expects to hit the high end of its revenue guidance, it only expects to achieve the low end of its margin guidance.

A2 Milk half year update

The A2 Milk Company Ltd (ASX: A2M) share price is charging higher today following the release of its half year results. Although the infant formula company reported a 53.3% decline in its net profit to NZ$56 million, management's upbeat commentary appears to have offset this. It commented: "The Company's outlook for 2H22 revenue has improved. It is still expected to be significantly higher than 2H21, and with growth now expected on 1H22 and for FY22, ahead of initial expectations due mainly to growth in China label and English label IMF."

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the AGL share price with an 11% gain following its takeover approach. Going the other way, the worst performer has been the Altium share price with a 10% decline following its half year update.

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