Italian Equities: Fiat Industrial, Finmeccanica, Prysmian, STMicro Move

Italy’s benchmark FTSE MIB Index rose 85.81, or 0.4 percent, to 20,637.39 at the 5:30 p.m. close in Milan, taking this week’s gain to 2.3 percent.

The following stocks were among the most active in the Italian market today.

Eni SpA (ENI IM), Italy’s biggest oil company, added 2 percent to 17.18 euros, rising for a fourth day. Petroleo Brasileiro SA, Brazil’s state-controlled oil company, may make a formal offer for Eni’s stake in Galp Energia SGPS SA by Jan. 9, Italian newspaper MF reported, without saying where it got the information.

Petrobras announced earlier this week it’s in talks to buy Eni’s 33 percent stake in Galp, Portugal’s biggest oil company.

Fiat Industrial SpA (FI IM) increased 4.2 percent to 9.05 euros. Banca Akros initiated coverage of the company, whose main assets are truck and tractor makers Iveco and CNH Global NV, with an “accumulate” recommendation.

Exane BNP Paribas initiated coverage of the stock with a “neutral” rating.

Finmeccanica SpA (FNC IM) surged 2.5 percent to 8.75 euros. Italy’s biggest defense company was among 20 European long-term stock picks from Societe Generale SA.

Gemina SpA (GEM IM) rose for a seventh day, adding 1.3 percent to 56.2 euro cents. Equita SIM SpA, an Italian brokerage, is buying up to 70.7 million shares of Gemina on behalf of an institutional investor, according to terms of the deal obtained by Bloomberg News.

Mediaset SpA (MS IM) increased 2.4 percent to 4.55 euros, the first gain in three days. The broadcaster owned by Italian Prime Minister Silvio Berlusconi had its price estimate lifted to 5.65 euros from 5.60 euros at Goldman Sachs Group Inc.

Molecular Medicine SPA (MLM IM) jumped 14 percent to 43.5 euro cents, the biggest gain since July. The Italian biotechnology company received clearance from the U.S. Food and Drug Administration for an IND filed to conduct a Phase III clinical trial of TK, its investigational cell-based therapy for the treatment of high-risk leukemia.

Prysmian SpA (PRY IM) climbed 9.2 percent to 14.16 euros, gaining the most since March 2009. The Italian company’s effort to buy Draka Holding NV and create the world’s biggest cable maker gained ground after competing Chinese bidder Tianjin Xinmao S&T Investment Corp. abandoned its pursuit of the Dutch company.

BofA Merrill Lynch Global Research reiterated a “buy” rating on Prysmian earlier today, saying “the deal on Draka would create value for Prysmian shareholders but would also raise the exposure to cyclical and competitive businesses.”

STMicroelectronics NV (STM IM) advanced 1.8 percent to 8.41 euros, the highest price since September 2008. Europe’s largest semiconductor maker had its price estimate lifted to 11 euros from 9 euros at Intermonte SIM SpA.

STMicro is one of Morgan Stanley’s hardware technology top picks for 2011 on emerging markets exposure.

To contact the reporter on this story: Francesca Cinelli in Milan at fcinelli@bloomberg.net.

To contact the editor responsible for this story: David Merritt at dmerritt1@bloomberg.net.

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