On the Move: EADS, Bayer, Endesa
From Standard & Poor's European MarketScope
SMITH & NEPHEW was up £0.15 to £6.31. Dresdner lifted its target to £7.10 from £6.55, and kept its buy rating. It sees the Plus Orthopedics deal as positive, expanding the company's European presence and bringing in new, complementary product lines.
ALLIANCE BOOTS was up £0.59 to £9.90. Dresdner upped the company to hold from sell, following a bid approach. Panmure did the same. The company said the potential offer begs a lot of questions. The company said that whatever happens, management has indicated a firm view that the company is undervalued.
ICI was up £0.25 to £4.89. Akzo Nobel has sold its pharma unit Organon BioScience to Schering-Plough (SGP) for €11 billion in cash, instead of the planned IPO.
EADS was down €0.24 to €22.36. China has a target of completing designs for a large aircraft by 2010, with the intention of producing its own aircraft engines, Bloomberg said, quoting state media citing an aviation industry official.
ENERGIES NOUVELLES was up €0.93 to €42.30. The company posted fiscal 2006 EBITDA of €91.8 million, up 47.3% year-over-year. Op. profit came in at €61.7 million, up 55.4% year-over-year, with net profit at €21.9 million, up 31.9% year-over-year.
BAYER (BAY) was up €1.22 to €44.99. The company's board okayed a proposed dividend payment of €1.00 per share for 2006 vs. €0.95 in 2005. In the press: citing unnamed sources, Euro am Sonntag reported that the company's CropScience business had new product sales of some €1 billion last year.
LINDE was up €0.11 to €79.13. The company presented its full set of 2006 figures, with the underlying operating business performance positive, according to Merck Finck. Long-term guidance was €3 billion EBITDA by 2010. Meanwhile, the company's newly-defined ROCE fell to 11.4% in 2006 from 13.7% in 2005.
E.ON (EON) was down €0.69 to €98.83. Il Sole 24 Ore wrote Saturday that Enel is interested in increasing its stake in Endesa to 29.9%, should Spain lift the 25% threshold for triggering takeover bids.
VAISALA was up €0.98 to €33.40. The company is benefiting from ongoing climate change discussions and last year the sales growth was 12% vs. flattish the previous five years. The CEO said the company has a clear growth strategy and that opportunities exist, especially in emerging markets like Brazil, India and China, according to sources.
SCA was up SEK1.50 to SEK379.50. The company is to acquire Procter & Gamble's (PG) entire European tissue operations. The company said it intends to further strengthen its product offering of brands and supply of products as well as strengthening product development.
ENDESA was up €0.15 to €38.85. Enel has signed a share swap with Mediobanca for 31.5 million shares in the company, equivalent to 2.98%, at €39/sh. This was understood to take Enel's stake in the company to 24.99%.
ABERTIS was up €0.28 to €22.42. Morgan Stanley resumed coverage with an overweight rating and €27 target.
ENEL (EN) was up €0.05 to €8.15 on the trade news.
SWISSCOM (SCM) was down CHF11.00 to CHF447.75. The company intends to launch an all-cash public tender offer on 100% of Fastweb at €47 per share for a maximum total consideration of €3.7 billion.
LONZA was up CHF2.20 to CHF113.90. The company extended its contract with Bristol-Myers Squibb (BMY) to make ingredients for the rheumatoid arthritis drug Orencia until 2013.