France Telecom Gains
From Standard & Poor's European MarketScope
France Telecom gained €0.40 to €24.77 after it confirmed buying 80% of Spanish mobile group Amena for €6.4 billion, offering to pay in cash. Co. will refinance part of the investment through a €3bn share sale, either to the sellers or through a public offering. Deal values Amena and its debt at €10.6 billion. Separately, note Co. releases 2Q results tomorrow. A consensus forecast compiled by Thomson puts revenues at €12.298 billion and EBITDA at €4.677 billion. Net profit is seen at €1.304 billion.
Eads was up €0.87 to €27.65 after the company posted second quarter net profit of €488m, up from €332m and beating estimates of around €375m. The company expects to deliver 360 planes in fiscal 2005, and is confident it will exceed its fiscal 2005 EBIT target of €2.6 billion. Eads raised its EPS guidance; it now expects €1.50 this year, up from €1.27 in fiscal 2004.
Publicis rose €1.15 to €27.10 after report ing first-half revenues up 4.6% to €1.9bn, or up 6.1% organically, beating forecasts of around €1.89bn.
Danone fell €1.30 to €83.15 after news a French regulator will launch an investigation into the Danone affair, Les Echos reports. This follows the frantic market talk suggesting the American food giant PepsiCo was planning to launch a bid on the company Meanwhile, ABN AMRO downgraded the shares to hold from buy, keeoing its 85.0 target price.
Siemens gained €0.38 to €66.18 ahead of fiscal third quarter results tomorrow. Consensus puts sales at €18.29 billion, group profit from operations at €1.25 billion, and net income at €711 million.
Deutsche Bank gained €0.78 to €71.78. Merck Finck expects the bank's 2Q figures, set for release tomorrow, will be burdened significantly by €300 million in restructuring expenses.
Puma was down €10.40 to €215.00 after the company posted 2Q net income above expectations at €58.9 million on quarterly sales of €395.5 million, up 12.3%.
Porsche was down €9.15 to €648.00 after its board okayed a fourth model line to be launched in 2009. Reportedly expects to sell at least 20,000 units per year. Furthermore, to invest some €1 billion in new four-door, four-seat model Panamera.
Prudential was up £0.12 to £5.37 after its first-half operating profit beat forecasts
BAE Systems rose £0.07 to £3.02. ABN Amro upgraded the shares to buy from hold and increases target price to £3.40 from £2.50.
Glaxosmithkline was up £0.08 to £13.29 ahead of 2Q results tomorrow. S&P Equity Research estimates turnover £5.140 billion, operating profit of £1.70 billion, net income of £1.170 billion, and EPS of 20.4p. Retains buy and £14.50 target price.
Reckitt Benckiser was up £0.23 to £17.16 after UBS lifted its target to £18.00 from £17.00 and keeps neutral. Citigroup lifts target to £17.5 from £16.5, keeps hold and Co's 'core sector hold' status post a solid set of 2Q 2005 figures.