European Movers: Deutsche Boerse, Soc Gen, Novartis

Plus more European stocks making headlines Friday

by S&P MarketScope Europe Staff

UK

ROYAL BANK SCOTLAND Up GBP0.15 to GBP3.82... Statement early next week - source - Co. says notes recent speculation about a possible rights issue. Confirms the interim management statement covering trading performance and capital will be made next week. A source says that 'it is safe to say that a statement can be expected early next week'. Co. holds an AGM on 23 April. According to press reports, Co. is looking at a rights issue to raise cash. However, there are rumours that Barclays could come out with a rights issue as soon as Monday.

PUNCH TAVERNS Down GBP0.05 to GBP6.17... Ends talks about managed pub biz - Says has concluded that pursuing any transaction (involving third parties) with Mitchells & Butlers, including any transaction involving Co.'s managed pub business, would not be in the best interests of Co. shareholders at the current time. Confirms all such discussions have terminated.

ENRC Down GBP0.60 to GBP12.12... Down on Kazakh metals export duty plan - Shares fall on news Kazakhstan is to introduce new export duties on metals.

FRANCE

SOC GEN Up EUR 4.16 to EUR 75.15... Bouton drops CEO role - remains chairman - Co. splits its chairman and CEO roles. Co.'s press release says this was Daniel Bouton's proposal - he remains chairman, but Frederic Oudea is appointed CEO. The board will officially approve the move on 12 May. In addition, the board has decided to increase the proportion of independent board members and will ask shareholders to appoint a new independent board member.

FRANCE TELECOM Up EUR 0.00 to EUR 19.87... In exploratory talks with TeliaSonera - Co. CFO Gervais Pellissier has told a journalist conference call that the French telco is in exploratory talks with TeliaSonera, Reuters reports. The financing for any deal would be a 'balance of cash and debt...which has not yet been determined', Mr Pellissier added. He also admitted that Co. may not keep its debt/gross operating margin ratio under its target of 2 if it completes the acquisition. Dresdner Kleinwort downgrades to sell from hold and cuts target to EUR 17.50 from EUR 20.00.

GERMANY

DEUTSCHE BOERSE Up EUR 2.30 to EUR 91.80... Profit warning talk & technicals weigh / Broker action - According to a technical analyst, with the break of the 90.78 key support (high of 04/2007) the price formed a fresh sell signal, and at the same time the relative performance of Co. against the DAX is in sell mode and will support a further acceleration on the downside. Meanwhile, a few traders note vague rumours of a profit warning but think this is just a story to try and explain the down moves. One trader says there has probably been one big seller with a lot of momentum players jumping on the bandwagon. On the broker front, Bankhaus Metzler cuts target to EUR 75.00 from EUR 92.00.

ITALY

ERG Up EUR 0.42 to EUR 14.25... Rumour of bid interest from Lukoil - Market sources report vague rumours that Lukoil could be interested in bidding for Co. Lukoil has in the past been mentioned as a possible bidder for Co.'s Sicilian refinery.

NETHERLANDS

DRAKA Up EUR 1.23 to EUR 23.45... Oman Cables stake 'strategic' - A spokesperson told Betten Financial News that Co.'s stake in Oman Cables Industry is 'strategic' and that it had performed well. De Telegraaf reported earlier that activist investor Lucent Capital Management, which holds a 4.2% stake in Co., had urged Co. to sell its interest in Oman Cables and invest the proceeds in its core activities.

NORDICS

YARA Up NOK45.50 to NOK394.00... 1Q above forecasts across the board - Co. reports 1Q revenues of NOK20.781bn vs a Reuters forecast of NOK19.658bn, EBIT of NOK2.86bn vs NOK1.846bn, fx gain of NOK486m, PTP of NOK3.783bn vs NOK2.567bn, net income of NOK2.808bn vs NOK2.0bn and EPS of NOK9.63 vs NOK6.82.

CARGOTEC Down EUR 2.64 to EUR 26.55... 1Q misses forecasts - Sees 2008 sales flat y/y - Co. reports 1Q sales of EUR 727m vs a Reuters forecast of EUR 820m, operating profit of EUR 44m vs EUR 64m, and order bookings of EUR 1.16bn vs EUR 1.02bn. Says sales growth in 2008 is expected to flat y/y, while EBIT margin is seen to improving 8%.

VOLVO Up SEK1.00 to SEK90.00... Volvo Trucks North America plans lay-offs of up to 1,100 staff at its Virginia plant next month and trim production there to merely one shift, reportedly.

SPAIN

BANKINTER Up EUR 0.33 to EUR 10.20... 1Q net income falls, but beats consensus - Co. reports 1Q NII up 7.4% y/y to EUR 153.77m, net operating income -6.1% to EUR 122.48m and net att. income -13.5% to EUR 73.65m, ahead of Reuters consenus of EUR 71.55m.

SACYR-VALLEHERMOSO Up EUR 1.35 to EUR 24.57... Sells Eiffage stake for EUR 1.92bn - Co. said after the close yesterday. This represents a price of EUR 62 per share, less than the EUR 63 that Co. said it has agreed in a previous statement.

SWITZERLAND

NOVARTIS Up CHF1.52 to CHF48.36... Morgan Stanley upgrades to overweight - Having been underweight previously, it now expects the drugmaker to enter a period of positive newsflow relating to its vaccine division and thinks consensus forecasts for the unit may need to double. Raises target to US$55 from US$50. JP Morgan lowers target to CHF58.59 from CHF63, keeps overweight. Separately, ahead of Co.'s 1Q figures due on Monday, WestLB expects (cont. operations) total sales of US$9.810bn vs US$9.128bn y/y, group EBIT of US$2.023bn vs US$2.335bn and EPS of US$0.81 vs US$0.89. Sees modest organic support with strong currency support.

This content is written by S&P MarketScope Europe (EMS), an equity newswire. Reporters are: Pawan Girglani, Emma Gonzalez, Julien Manrique, Sara Oscarsson, Rocio Opazo-Aniotz, Gaurav Panchal, Claudia Perotti, Michael Sanderson, Emma Stevenson, John West, Isabell Witt .