Brit, Daimler, Nestle, UBS, UniCredit: European Equity Preview
The following companies’ shares may have unusual moves in European trading. Stock symbols are in parentheses, and prices are from the previous close.
The Stoxx Europe 600 Index fell 0.3 percent to 266.75. The Stoxx 50 Index declined 0.4 percent to 2,550.70. The Euro Stoxx 50 Index, a benchmark for nations using the euro, slipped 0.3 percent to 2,873.74.
Allied Irish Banks Plc (ALBK ID): The lender being taken over by Ireland’s government will appoint David Hodgkinson as executive chairman, the Sunday Business Post reported, without saying where it got the information. The shares fell 1.3 percent to 39 cents.
Alstom SA (ALO FP): The company said the consortium it runs with Bombardier Inc. will build 468 subway cars for the Montreal transit authority. Alstom’s share of the Montreal car order is worth 345 million euros and Bombardier’s share worth 519 million euros, according to an e-mailed statement. The shares added 1.34 percent to 37.83 euros.
Banco Popolare SC (BP IM): Italy’s fifth-biggest bank said its board approved a plan to start a share sale of up to 2 billion euros. The shares fell 0.9 percent to 4.30 euros.
Bayerische Motoren Werke AG (BMW GY): The world’s largest maker of luxury vehicles doesn’t expect the first generation of electric cars to be profitable, Focus reported, citing Chief Executive Officer Norbert Reithofer. The shares rose 1 cent to 50.03 euros.
Brit Insurance Holdings NV (BRE LN): Apollo Global Management and CVC Capital Partners Ltd. are planning to make a formal takeover offer today for the Lloyd’s of London insurer, the Sunday Times reported, without saying where it got the information. The shares gained 0.6 percent to 1,024 pence.
Centrica Plc (CNA LN): The U.K.’s biggest energy supplier has shelved a 1.5 billion-pound ($2.35 billion) plan to build two gas storage facilities in the North Sea and Irish Sea, the Telegraph reported, without citing anyone. The shares declined 1.1 percent to 325.5 pence.
Continental AG (CON GY): Europe’s second-largest auto-parts supplier, will invest over 500 million euros ($698 million) in new tire plants, boosting capacity in China and Brazil, the Frankfurter Allgemeine Zeitung reported, citing an interview with Chief Executive Officer Elmar Degenhart. The stock jumped 1.3 percent to 63.21 euros.
Daimler AG (DAI GY): The maker of Mercedes-Benz vehicles has completed specifications for a Chinese electric car being developed jointly with BYD Co. and will soon select the design, Chief Executive Officer Dieter Zetsche said. The shares advanced 0.6 percent to 49.31 euros.
E.ON AG (EOAN GY): Germany’s largest utility is “fundamentally” interested in expanding in Asia including China, Chief Executive Officer Johannes Teyssen told Sueddeutsche Zeitung in an interview. The shares fell 0.3 percent to 22.33 euros.
EVS Broadcast Equipment SA (EVS BB): The Belgian supplier of digital disk recorders for broadcast vans said it will get about 30 percent of 2010 sales from emerging markets compared with 22 percent five years ago. The shares rose 0.2 percent to 45.10 euros.
Gas Natural SDG SA (GAS SM): A joint venture by the Spanish gas utility and Alstom SA was awarded 60 percent, or 456 megawatts, of wind-energy projects granted by Catalonia, Cinco Dias said. Gas Natural shares slipped percent to 10.69 euros.
Hermes International SCA (RMS FP): LVMH Moet Hennessy Louis Vuitton SA (MC FP), the world’s largest maker of luxury goods, said it intends to raise its stake in Hermes International SCA to 17.1 percent after buying 14.2 percent and doesn’t plan on taking control of its rival. Hermes shares jumped 3.55 percent to 176.20 euros.
Hochtief AG (HOT GY): The German builder in talks with Qatar about taking a stake to help thwart a hostile takeover bid by Spain’s Actividades de Construccion & Servicios SA, Spiegel reported. The shares rose 0.7 percent to 63.44 euros.
Nestle SA (NESN VX) The world’s biggest food company’s Executive Vice President Luis Cantarell said there may be more “medium-sized” acquisitions in the industry because large mergers are more likely to encounter antitrust resistance. The shares declined 0.8 percent to 52.65 francs.
Novartis AG (NOVN VX): The Swiss drugmaker expects sales of its best-selling hypertension treatment, Diovan, to be about 2 billion Swiss francs after its patent expires, Chief Executive Officer Joe Jimenez told NZZ am Sonntag. The CEO also said the company hasn’t implemented a hiring freeze. The shares declined 0.8 percent to 56.85 francs.
PSA Peugeot Citroen (UG FP): The French carmaker plans to boost staffing at its research and development center in Shanghai as it seeks to enter China’s high end car market, Gregoire Olivier, president of the French automaker’s Asia division, said. The shares increased 2.8 percent to 29.60 euros.
Telecom Italia SpA (TIT IM): Italy’s biggest phone company will cut salaries by 15 percent and working hours for up to 29,000 employees at two units to avoid job cuts, Corriere della Sera said, citing an e-mail sent by the Chief Executive Officer Franco Bernabe to labor unions. The shares declined 0.8 percent to 1.01 euros.
UBS AG (UBSN VX): The biggest Swiss bank, hired Rob Heller to head gaming and leisure investment banking in the Americas. The shares fell 0.9 percent to 17.43 francs.
UniCredit SpA (UCG IM): The Italian lender may have to pay a local municipal authority 650,000 euros ($905,000) after an Italian court nullified derivatives contracts sold by the bank, the Financial Times said. The bank’s shares dropped 1.6 percent to 1.91 euros.
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