On the Move:Deutsche Telekom, EdF, Cairn Energy
From Standard & Poor's European MarketScope
TATE & LYLE was down £0.09 to £7.79. First half underlying pretax profit was up 27%. The company expects further year-on-year progress in the second half.
CAIRN ENERGY was up £0.24 to £17.79. The company said it will hold 69.5% per cent. of Cairn India immediately following the flotation and the price will be determined following a 'book building' process. The company saw illustrative gross proceeds of US$1.8 billion based on the value for the Indian business implied by the company's closing share price.
EDF was down €0.15 to €47.36. Goldman Sachs cut its target to €52.10 from €53.80 to reflect the impact of re-regulation, an assumption of no free CO2 allowances post-2012 and tougher regulation in Germany.
AREVA was up €4.40 to €500.50. The company and Canada's Mega Uranium each bought a 6.25% stake in Australia’s Polaris Metals and Washington Resources. Polaris and Washington each retain 25% of Northern Uranium, whose principal venture is the Gardiner-Tanami Super project in Western Australia and the Northern Territory.
DEUTSCHE BANK (DB) was up €0.04 to €98.65. The company's third quarter net income of €1.24 billion was firmly ahead of expectations, though the result included a €125 million insurance payout and €92 million from a stake sale. Quarterly net trading revenues at €1.54 billion were lower than expected.
CONTINENTAL was down €0.78 to €86.84. The company reported lower-than-expected third quarter adjusted EBIT of 410.3 million against €414.2 million for the same period a year ago, with quarterly revenues broadly in line at €3.71 billion vs. €3.43 billion last time. It said it has had a strong start to the winter tire business in the fourth quarter, and reaffirmed that it expects a higher operating profit next year.
DEUTSCHE TELEKOM (DT) was down €0.03 to €13.53. Sistema is looking to buy 10-20% of the company, according to FTD. Commerzbank noted that the Russian conglomerate is said to be targeting an asset swap. In exchange, the company would receive a share in Russia's largest mobile operator MTS.
BP MILANO was up €0.41 to €12.00. The governor of the Bank of Italy, Mario Draghi, said that the domestic banking sector should prepare itself for foreign competition, reported the FT. Draghi also added, that Italian mutual banks need to review rules that limit shareholders to just one vote each, regardless of the size of their stakes.
TELEFONICA (TEF) was up €0.13 to €15.23. The company is aiming for revenues of €70 billion in 2009 - CEO Cesar Alierta expects the company to reach €70 billion in revenues by 2009, a higher target than the company had previously set, reported El Pais.
MAPFRE was down €0.05 to €3.42. Citigroup downgraded the company to sell from hold with a €3.25 target. it said nine month results were robust but it has doubts over the motor division. It noted that the company's M&A ambitions put cash flows at risk.
ROYAL DUTCH SHELL (RDS) was up €0.01 to €27.12. Oil languished under US$59 a barrel as OPEC's output curb took effect, but with remaining questions about compliance.
SWISS RE was up CHF1.60 to CHF103.60. Allianz (AZ), St Paul Travelers (STA), the company and other insurers must only pay leaseholder Larry Silverstein the cost of rebuilding the World Trade centre towers as they stood immediately before the Sept 11 attacks. The insurers will not have to pay the additional costs of US$700 million that Silverstein and other policyholders were seeking, a federal judge ruled.
TELE2 was up SEK7.50 to SEK83.50. Results came in at €1.78 billion against €1.87 billion for the same period a year ago and a consensus view of €1.49 billion. Quarterly customer intake came in lower than expected at 435k, but investors also focused on the company's bright outlook.