European Movers: British Energy, Sanofi Aventis, TNT

Plus more European stocks making headlines in Friday's market

by S&P MarketScope Europe Staff

UK

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.

FRANCE

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.

GERMANY

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.

ITALY

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.