European Movers: UBS, Nokia, Akzo Nobel
TATE & LYLE was up £0.39 to £4.42... Barron's says vulnerable to bid / Brokers cut targets - Barron's says the company looks vulnerable to a takeover bid from the likes of Nestle as investor confidence drains away from the sugar and sweetener supplier. The company says, to avoid that fate, the company has to pick up the pace of diversification into higher-margin ingredients to reduce its dependence on the cyclicality of the sugar market. ABN Amro lowers target to £4.90 from £6.90 but retains buy. Morgan Stanley cuts target by 17% to £4.30 from £5.20 and reinforces underweight rating. Goldman Sachs downgrades to neutral from buy. Cuts target to £4.10 from £6.50. JP Morgan cuts target to £4.20 from £6.10, maintains neutral.
BIFFA was up £0.13 to £2.35... Continued to see encouraging performances - the company today announces an update on trading for the 26 weeks ending 28 September 2007 in advance of announcing its first half results on 28 November. Following the release of its interim management statement in July, says it has continued to see encouraging performances from the Resource Recovery and Landfill and Power Generation divisions into the second quarter. The company says performance for the full year from the Collection Division is expected to be in line with the prior year, following a first half performance anticipated to be below that of the prior year.
TOMKINS was down £0.03 to £2.24... Zimmermann to become CFO as of today - the company announces that Kenneth Lever is to step down from the Board as Finance Director as of today, and John Zimmermann, who was previously Vice President - Corporate Development, will become the CFO.
AIR FRANCE-KLM was up €1.67 to €27.44... Goldman Sachs adds to Pan-European conviction buy list - Broker says the company 's shares have fallen by 31% since August 1, despite superior balance sheet strength. Views power and protection of its network as being unrecognised and says mean reversion is warranted. Lowers its price target to €30 from €39.70, as it reduces estimates on European flag carriers since it sees rising risk of softening demand. The company reiterates buy.
THEOLIA was up €1.10 to €19.80... Rumours of interest from GE - market sources - Traders note market rumours that the company is vulnerable to a bid, with GE named as potential buyer.
SOC GEN was up €1.52 to €119.20... Citigroup adds to banking woes - Following UBS's warning on third quarter - where UBS says it will post a pre-tax loss of CHF600 million-CHF800 million - and CS Group's disclosure that third quarter net income from continuing operations should be within +/- 20% of CHF1.30 billion (vs consensus of CHF1.85 billion), Citigroup estimates it will report a c. 60% q/q decline in net income. Highlights dislocations in the mortgage-backed securities and credit markets, and deterioration in the consumer credit environment are expected to have an adverse impact on third quarter results.
ALCATEL-LUCENT (ALU) was down €0.18 to €7.02... Board mulls firing Russo and Tchuruk - the company is mulling whether to replace the company CEO Patricia Russo and Chairman Serge Tchuruk, La Tribune writes.
TUI AG was up €1.05 to €19.89... Guy Wyser-Pratte to up stake in Co, with the US activist investor telling Handelsblatt that he aims to break up the conglomerate.
GRAMMER was up €0.74 to €22.95... CFO on revenue targets (press) - the company 's chief financial officer told Euro am Sonntag that the group is aiming for annual revenues of more than €1 billion by 2009, which compares to the EUR 881 million achieved last year.
BAYER was up €0.67 to €56.49... Positive results for VEGF Trap Eye in a Phase II study. Treating AMD, the medicine showed a statistically significant reduction in thickness of the retina as well as improvement of vision after 12 weeks.
FIAT was up €0.49 to €21.65... Total Italian car sales seen rising 3% in Sept - Italian auto sales data for September is scheduled to be published around 16:00 GMT. Total Italian car sales are expected to rise 3% to 188,000-190,000 units in September, representing a slowdown from an increase of 6.8% in August, according to Corriere della Sera on Saturday. the company is setting up an international network of dealers to offer Abarth versions of models such as the Grande Punto and new 500, writes the FT. By 2010, the company should be preparing to launch specific Abarth models developed from the platforms - basic engineering structures - of others car in the group, Luca de Meo, marketing director, told the Financial Times in an interview on Sunday.
TOMTOM was up €2.29 to €56.80... Nokia says it will buy Navteq at US$78/share in cash, including outstanding options for an aggregate purchase price of US$8.1 billion. Exane BNP Paribas thinks US peer Garmin will be substantially weakened in the medium and long term. Adds that this would obviously have positive repercussions for the company.
DSM was up €1.32 to €39.17... Exane BNP Paribas ups target to €48 €45, keeping its outperform rating. Broker notes the company last week announced the acceleration of its transformation into a less cyclical, more fast growing company with the disposal of non-core assets. Believes the transformation is grounds for a rerating and sees potential for earnings upgrades in the next few years.
AKZO NOBEL (AKZOY) was up €2.19 to €59.99... The company says makes formal bid for ICI - with completion of the action expected on 2 January, 2008.
CORPORATE EXPRESS was down €0.10 to €7.54... CEO steps down - 'stand alone' strategy push - the company publishes the results of its strategic review this morning, stating its preference for a 'stand-alone position as [a] global player.' CEO Frans Koffrie steps down as CEO, replaced by Peter Ventress 'effective immediately.' the company targets organic sales growth of over 6% p.a. for 2008-10, with the business model 'supporting EBITDA margin of at least 7%.'
NOKIA (NOK) was down €0.49 to €26.17... Acquires Navteq for US$8.1 billion (updated) - the company says it will buy Navteq at US$78/ share in cash, including outstanding options for an aggregate purchase price of US$8.1 billion. Cheuvreux upgrades to selected list vs outperform and raises target to €32 vs €25. Raises EPS estimate by 10.1%, 8.0% & 10.8% for 2007-09. The company says it still finds by far cheapest growth in the company , compared with peers. Separately, The EU commission initiates formal proceedings vs Qualcomm in antitrust probe, Reuters reports. Meanwhile, NSN enters into partnership with IBM that includes transfer of Research and Development Center activities in Munich and Berlin.
LINDEX was up SEK7.75 to SEK114.25... Accepts Stockmann's takeover bid - the company Accepts Stockmann's SEK116/share takeover offer, made last night, and will recommend it to its shareholders.
STATOILHYDRO was down NOK1.75 to NOK182.00... M. Stanley resumes with overweight - Statoil and Norsk Hydro will start trading as one company today. Norsk Hydro will now operate as an aluminium business. Morgan Stanley resumes coverage on the company with an overweight rating, setting price target at NOK225 and highlights the company as its top pick, replacing BG.
NORSK HYDRO (NHY) was up NOK0.43 to NOK76.50... Expected to start trading at NOK75 - From today the company 's aluminium business will be the only part remaining. One local broker expects the company to start to trade at NOK75.
TELEFONICA (TEF) was down €0.16 to €19.47... Deal with Yahoo!
/ PT wants Vivo stake - the company and Yahoo! have agreed a deal under which the company 's local susidiaries will offer Yahoo! oneSearch as their search engine partner. the company will also integrate Flickr and Yahoo! Mail into its portfolio of mobile internet services. Portugal Telecom's CEO has told Portuguese newspaper Diario Economico that PT is interested in buying the company 's stake in their 50/50 j/v Vivo. the company 's O2 wants to increase its share of the German market to 25% from the current 13%, the unit's head Jaime Smith told a German paper. Mexico is considering allowing multinationals such as the company to enter the fixed line market, breaking the monopoly of Carlos Slim's Telmex, La Gaceta reports citing local paper La Jornada.
ANTENA 3 was down €0.43 to €12.51... Cr. Suisse cuts target / 16.2% share in Sept - Credit Suisse cuts target to EUR 16 from €18; outperform. Prefers Telecinco. Thinks the company continues to be vulnerable to earnings downgrades given its struggling audience share (not helped by the poor new season performance of its programming grid) and the resultant pressure on its power ratio and on programming costs. Telecinco won the TV audience share battle once more in September with 21.1% share. the company and TVE1 both had 16.2%. Cuatro achieved 7.2% and La Sexta 5.5%.
UBS (UBS) was up CHF1.90 to CHF64.50... Expects third quarter loss / Dresdner keeps buy - the company will write down some CHF4 billion due to credit woes and announces it will reorganise management. CEO says the vast majority of business outside of fixed income performed 'well or very well'. Adds that the critical time going forward in the subprime crisis is the next six months. Goes on to say the it will resume share buybacks once profitability has been restored. In further news, the company discloses it is taking a broom to its senior management level and is slashing jobs. S&P Equity Research cuts target to CHF65 from CHF70, hold. Dresdner argues now is the time to focus on the company 's good fundamental value, and keeps buy.
CS GROUP (CS) was up CHF1.40 to CHF78.70... Expects to disclose profit in third quarter - In response to UBS's warning on third quarter - where UBS says it will post a pre-tax loss of CHF600 million-CHF800 million - the company has announced it will post a profit in third quarter. The company says third quarter net income from continuing operations should be within +/- 20% of CHF1.30 billion. Expects net income for nine months07 to be at a record level. For third quarter, consensus looks for net income of CHF1.85 billion. Merrill Lynch believes the difference is attributable to a write down of LBOs. Rates buy with CHF102 target.