European Movers: Barclays, Credit Agricole, Ahold
BARCLAYS Up GBP0.18 to GBP3.08... Shareholders take up just 19% of offer - Co. says the remaining 1,140,310,966 open offer shares have been allocated to Qatar Investment Authority, Challenger, China Development Bank, Temasek and certain leading institutional shareholders and other investors with whom they had been conditionally placed.
BAT Up GBP0.25 to GBP17.80... Analysts positive ahead of 2Q - Dresdner trims target to GBP19.50 from GBP21. Retains buy. RBS upgrades to buy from hold. Goldman ups target to GBP20.23 from GBP19.56. Keeps neutral as finds more potential upside in other areas of the consumer staples universe. Ahead of Co.'s 2Q/1H results due out on 31 July, expects solid 1H results, with EBIT of GBP1.76bn, up 15.7% y/y.
CREDIT AGRICOLE Up EUR 0.99 to EUR 14.02... Reorganises Calyon - Co. says that starting from 31 July Calyon will be setting up a 'new, simplified organisation of its business lines and a new governance system to promote cross-divisional activity.' Names new heads for its four major business lines: Coverage and Investment Banking, Structured Finance, Equity Brokerage and Derivatives, Fixed Income Markets.
ACCOR Up EUR 1.24 to EUR 43.75... 2Q sales fall 7.5%, in line with estimates - Co. reports 2Q sales down 7.5% to EUR 1.97bn, in line with estimates. Co. posts a 6.2% slide in 1H sales to EUR 3.77bn. Co. gave no concrete forecasts for the full year.
L'OREAL Down EUR 1.37 to EUR 64.93... Cuts annual growth forecast / RBS downgrades to sell after reporting lower-than-expected quarterly sales. Co. cut its 2008 annual revenue growth target to around 6% from 6-8% after tabling 2Q revenues of EUR 4.29bn, a touch below the consensus estimate. Deutsche Bank cuts target to EUR 60 from EUR 65, keeps sell following the release. RBS downgrades to sell from hold after 'uninspiring 1H share performances' across its European Consumer Staples coverage.
CASH.LIFE Down EUR 0.15 to EUR 2.85... Berenberg Bank says no plans to buy Co. - refuting earlier speculation on the matter following the bank's lifting its stake in the group to 25.8% from less than 10%.
K+S AG Down EUR 29.38 to EUR 304.77... UBS initiates with buy and EUR 460 target.
PARMALAT Up EUR 0.09 to EUR 1.65... In talks with Unicredit over legal claims settlement - Co. has confirmed that is in talks with Unicredit to settle legal claims but an agreement has yet to be signed. Earlier in the day, press reported that Unicredit could pay Co. EUR 300m to settle legal claims stemming from the its 2003 bankruptcy. Il Sole also points out Bank of America, Deutsche Bank and Morgan Stanley have agreed to terms for compensation for about 35,000 Co.'s bondholders wiped out in its bankruptcy. Cheuvreux comments that the settlement would imply a EUR 0.3bn cash inflow for Co., taking net case to ~EUR1.5bn by year- end. Says that this would be very good news as it would imply an increase of forecast for residual settlements by EUR 0.1/sh. Reduces EPS by 4-5% after Monday's profit warning. Keeps outperform.
TELECOM ITALIA Unchanged at EUR 1.24... Credit Suisse cuts target to EUR 1.0 from EUR 1.4 to show a small increase in line loss versus 1Q and cuts 2008E EBITDA forecast by 2.7% to EUR 11.5bn ( vs. consensus of EUR 11.9bn). Ahead of Co.'s 2Q results, broker expects the telco to report EBITDA of EUR 2.96bn. Expects TIM Italy revenues to decline 34%, with elasticity reducing, partly impacted by fewer pre-paid top-ups as consumers react to a slowing economy, and partly a result of loss of share following the value based strategy.
AHOLD Down EUR 0.30 to EUR 8.17... Delhaize cuts outlook, weighing on Co. - Co. falls following Delhaize cutting its FY08 net profit forecast to 15-20% growth vs a previous 25-30% growth on 'continued weakening of the consumer environment.'
ARCELOR-MITTAL (NL) Down EUR 1.39 to EUR 50.53... Nucor outlook weighs on stock - Co.
continues to be weighed down by US player Nucor's 2Q statement yesterday, which revealed a sharp jump in profit but sounded a cautious note on outlook. The stock closed down 11%.
SBM OFFSHORE Up EUR 1.06 to EUR 15.14... Unveils three new contracts - Co. unveils three new contracts: 1) an offshore support contract from BP Angola; 2) a contract to source, construct and install an oil loading system from Total E&P Angola awarded to a consortium including Co. and APL; and 3) a contract to supply two 1,000 ton cranes and two jacking systems for two wind turbine installation jack-up vessels from Resolution Shipping, Cyprus. Contracts 2) and 3) total c.US$230m.
SWEDISH MATCH Up SEK6.00 to SEK116.00... 2Q PTP tops expectations - Co. reports 2Q sales of SEK3.28bn vs a Reuters forecast of SEK3.21bn, EBIT of SEK733m vs SEK692m, PTP of SEK614m vs SEK586m and wet snuff margin of 43% vs 42.9%. For 2008 Co. estimates higher u/l sales and EBIT y/y, and sees further room for improvement in 2008 for the US cigar operations.
SANDVIK Down SEK2.25 to SEK84.00... 2Q PTP misses forecast - Reports 2Q sales of SEK24bn vs a Reuters forecast of SEK23.4bn, order bookings of SEK24.7bn vs SEK25.3bn and PTP of SEK3.3bn vs SEK3.46bn. Unit operating margins: Tooling 24.2% vs 24.6%, Material Technology 9.2% vs 10%, Mining and Construction 14% vs 15%. Says the value change of Nickel inventories had a negative impact of SEK176m at the MT unit in 2Q. Says order bookings from oil industry to MT unit were slightly weaker y/y. Says demand in most markets was stable in 2Q. Co. sees negative impact of SEK250m-SEK300m in the MT unit in 2H08 due to value changes of inventories. Co. sees a negative impact on FY08 of SEK600m due to fx, and SEK150m in 3Q.
UNION FENOSA Up EUR 1.14 to EUR 14.74... ACS to invite bidders for Co. stake - ACS is to invite EDF, Gas Natural, E.On and RWE to bid for its 45.3% stake in Co., Cinco Dias reports. Meanwhile, ABC reports that ACS has an agreement to sell its 45.3% stake in Co. to EDF. Says ACS would sell the stake for EUR 16 per share, forcing EDF to make a full takeover bid that would value Co. at EUR 15bn.
UBS Up CHF1.56 to CHF21.98... To stop US offshore banking services - Co. is stopping offshore banking services for US clients as a step to address any compliance failures that may have occurred in the US cross-border business.