European Movers: British Energy, Sanofi Aventis, TNT
BRITISH ENERGY Up GBP0.36 to GBP7.16... Receives takeover offers at a premium - Says has received a range of proposals from several parties wishing to make a full offer. Adds these include proposals priced higher than closing share price on 15 May. Says the Board has decided that talks should continue with all the parties concerned. Adds each of the proposals requires further development and that the process is therefore likely to continue for a number of weeks.
BRITISH AIRWAYS Up GBP0.09 to GBP2.33... FY PTP up 45%, to pay 1st div since 2001, - Posts FY07 PTP of GBP883m, +44.51%; fuel costs GBP2bn; revenue GBP8.753bn, +3.1%; operating profit GBP875m, operating margin 10% vs 7.1% yr ago. To pay first dividend since 2001. Expects FY08 revenue to increase by around 4% - in-line with the lower end of the guidance given earlier. Says hedging cover has increased with c.72% cover for 1H and just under 60% for 2H. Adds has c.30% cover for 2009/10. Says 1Q08 will be particularly difficult and FY08 will also be challenging. Says that based on a cost of US$85/bbl of crude oil expects a total GBP450m increase, while based on the current market price for oil of US$120/bbl total FY08 fuel costs would rise by around GBP1bn.
SANOFI-AVENTIS Down EUR 1.04 to EUR 47.46... Unveils successful Multaq study / Exane ups target - Co. last night revealed that finding from its ATHENA study showed that Multaq (dronedarone), a potential therapy for the treatment of patients with atrial fibrillation or atrial flutter, decreased the risk of cardiovascular hospitalizations or death from any cause by a statistically significant 24%, meeting the study's primary endpoint. Exane BNP Paribas ups target to EUR 60 from EUR 58, keeps outperform.
MICHELIN Up EUR 1.45 to EUR 62.60... Will raise prices when 'opportune' - CFO - Co.'s CFO Jean-Dominique Senard reportedly says that Co. will raise prices this year when it's 'opportune' to offset rising raw-material costs. Adds excess costs related to raw materials will exceed EUR 600m. Sees moderate sales growth in 2008 and reiterates op profit is seen coming in near 2007 level.
RODRIGUEZ Down EUR 1.66 to EUR 14.10... Brokers cut targets post-1Q sales - Says 1H sales came in at EUR 177m, down 12%. Exane BNP Paribas downgrades to underperform from neutral and cuts target to EUR 14 from EUR 20. Cheuvreux trims target to EUR 17 from EUR 20. Adds new boats are weak (-2%) and second hand boats (-56%) are worrying. Cuts EPS by 20%. Keeps underperform.
DEUTSCHE BOERSE Up EUR 1.64 to EUR 105.73... Eurex / Technical support / Broker action - Record Eurex business is driving Co.'s stock higher, say traders. Chartists point to a technical breakout. On the broker front, WestLB cuts target to EUR 112 from EUR 116, reiterating hold.
CONTINENTAL Up EUR 2.99 to EUR 82.16... Stake building talk lifts stock higher - No further details at this point in time. In the news: Co. is to invest EUR 100m in its first manufacturing plant in Thailand as part of a plan to expand sales in Southeast Asia.
COMMERZBANK Down EUR 0.76 to EUR 22.58... Shareholders okay potential cap hike - In addition to having voted outgoing CEO Klaus-Peter Mueller onto the group's supervisory board, Co.'s shareholders have authorised a capital injection, if one is needed - for acquisitions, for instance.
BANCO POPOLARE Up EUR 1.04 to EUR 13.79... Brokers lift targets post 1Q results Credit Suisse upgrades to neutral from underperform and lifts target to EUR 14.30 from EUR 13. Reduces adj. EPS estimates for 2009-10 by 2% (higher minorities while everything else is substantially unchanged. Says EPS estimates remain 7% below management targets for both 2008 and 2010. Goldman lifts target to EUR 14.20 from EUR 14.00, post 1Q08 results. Slightly adjusts 2008-10 EPS estimates. Keeps neutral rating. Merrill Lynch lifts Fair value to EUR 13.9 from EUR 13.2. Says that the higher visibility provided by 1Q reduces uncertainty on the volatility of our EPS estimates. Keeps neutral recommendation. Co.
unveiled 1Q net profit of EUR 260m, down 9.1% y/y, while net interest income rose 14% over pro forma year-earlier figures to EUR 643.5m.
BULGARI Down EUR 0.10 to EUR 7.94... JP Morgan cuts target to EUR 8.00 from EUR 9.00, following weaker than expected 1Q08 results. Cuts FY08 and FY09 EBIT by 4% and 5% respectively to reflect much higher SG&A and lower Sales more than offsetting higher Gross Margins. keeps neutral recommendation. Co. has disclosed a 4.6% fall in 1Q net profit due to higher costs and a sales slowdown, but confirmed its outlook for the year as long as a tough economic climate does not worsen.
TNT Up EUR 0.76 to EUR 26.11... Parliament postpones mail liberalization - Contrary to rumors in the Dutch local press, Bloomberg writes that the Dutch government has postponed postal market liberalization. Dutch FD reported earlier that it looked like most parties in parliament were pro-liberalization as of 1 July.
SBM OFFSHORE Up EUR 0.68 to EUR 26.15... Reiterates outlook / GS ups 2H08 WTI forecast - At yesterday's AGM, Co. reiterated its FY08 guidance of net income of US$280m. Also expects BP contract soon. Goldman Sachs' commodities analysts have raised their average 2H08 WTI price forecasts to US$141/bbl from US$107/bbl. Says supply constraints and a lack of scaleable substitutes are set to continue driving the long end of the oil curve higher.
SUBSEA Up CHF5.75 to CHF149.75... IQ increases across the board y/y - 1Q revenues comes in at US$562.1m vs US$475.9m y/y, adjusted EBITDA at US$106.9m vs US$62.5m, net operating profit at US$84.7m vs US$45.6m and PTP US$81.6m vs US$45.9m. Co. states 1Q saw good project execution in all regions and satisfactory financial result with EBITDA margin of 19%.
CARLSBERG Up DKK8.00 to DKK682.00... Launches rights issue at c.40% discount - Co. launches a rights issue valued at DKK30.5bn in order to repay part of its debt following Co.'s and Heineken's GBP7.8bn acquisition of Scottish & Newcastle, according to a company statement. Co. will offer shares on a one for one basis at DKK400, equaling a 40% to Wednesdays closing price of DKK666. The rights issue is supported by BNP Paribas, Danske Bank, Lehman Brothers and Nordea Bank.
AKER YARDS Down NOK4.50 to NOK70.50... Havyard may sell its 11% stake - Co.'s second biggest shareholder Per Saevik is, through privately held Havyard, reported to consider divestment of his 11% stake as the election committee didn't elect any of his candidates to the board, Dagens Naeringsliv reports.
FERROVIAL Unchanged at EUR 53.40... Expects to double Heathrow profits - press - Co. has courted fresh controversy by publishing internal predictions that its profits at Heathrow will more than double within five years, The Independent reports. Says Co. expects the airport to generate GBP1.37bn in earnings after expenses by 2012, up 117% from the GBP632m it expects to pocket this year.
GRIFOLS Up EUR 0.08 to EUR 19.21... Goldman Sachs lifts target to EUR 21 from EUR 20, buy. Raises 2008 EPS estimate to EUR 0.60 from EUR 0.56 and 2009 to EUR 0.81 from EUR 0.77. Sees risk to estimates on the upside, especially at gross margin level. With more fractionation capacity spare than any other major fractionator, Co. is in pole position to exploit positive demand trends for key plasma derivatives.
ACTELION Up CHF1.25 to CHF58.50... Up on almorexant partnering hopes (update) - Traders say shares are up on speculation that Co. will find a partner for sleeping pill almorexant sooner than expected, perhaps within a few weeks. In April, Lehman Brothers said possible partners are Pfizer, Novartis, JNJ and Schering-Plough, with the market likely to prefer the former two. The broker said it expects US$2bn peak almorexant sales and launch by YE2011. Pharmawire reported on 9 May that Co. could strike a deal very soon, citing industry sources. It said that GSK and Novartis were the two main contenders, citing a source claiming knowledge of the situation. A spokesperson for Co. says there is no comment on market rumours but notes the partnering process is ongoing.
BALOISE Down CHF3.70 to CHF114.80... Reports 1Q volume growth of 6.7% - Quarterly total business volume was CHF3.33bn.