DEUTSCHE BOERSE was up €1.75 to €105.90. EU sets up task force on Euronext/NYSE merger proposal, and envisages reaching a decision by the start of 2007. The European regulator reportedly aims to ensure that US accounting rules will not apply to Euronext-listed groups. Meanwhile, CEO Francioni said the company 's bid for Euronext offers better long-term value than NYSE's bid as it attempts to swing shareholders of Euronext in favor of a European deal.
BAYER was up €1.06 to €34.38. The company owns 88.28% of Schering shares now. On the broker front, ING upgrades the company 's stock to buy from hold, lifting the fair value to €39 from €32.
Italy
ALITALIA was up €0.06 to €0.92. Deutsche Bank resumes coverage with buy and €1.13 target. The carrier says in the near term it believes the the company turnaround story now depends not just on cost cutting but also on a good summer trading environment. Highlights this undesirable position has come about due to: 1) first quarter strike disruption and the suspension by unions of cost control initiatives; 2) a fuel price that YTD averages above US$60/bbl; and 3) first quarter results with good cost saving progress from the Servizi deconsolidation and on employee costs, but no real sign yet of procurement cost initiative savings.
FINMECCANICA was up €0.34 to €17.10. The company 's AgustWestland has reached an agreement with China's Police to supply three A109 Power and one AW139, domestic sources report. Separately, Canada has announced a CAD4.7 billion project to buy 16 helicopters and maintain the fleet for 20 years, but did not disclose which groups might be contenders for the contract, Reuters reports.
Nordic
NOKIA was up €0.24 to €15.45 ABN Amro says that channel checks indicate that the company is gaining market share in European handsets in Europe. The broker says the driver for the company is 3G sales, mainly the 6234/6233 mid-end 3G-phone but also high-end phones like the N80 (3MP camera) and N91 (4GB hard disk drive music phone). says this mix shift should also support ASP. Reiterates hold, €16.5 target.
FORENINGSSPARBANKEN Up SEK7.50 to SEK187.50. Cheuvreux upgrades to outperform from underperform, with an unchanged price target of SEK210. The broker raises its earnings estimates by 3%, 3% and 4% for 2006-08 following an upgrade to its forecasts for the Baltic operation.
ALFA LAVAL was up SEK8.00 to SEK209.00. Dagens Industri says that the high oil prices are a positive factor for the company The newspaper highlights the company 's timely develompent and investment in the production of heating foundation devices for natural gas, made at Lundabolaget factory in Lund. The newpaper quotes CEO Lars Renstrm saying the decision to invest in this type of production was made about two years ago and says that 'timing was down to luck'.
Spain
FCC was up €0.85 to €59.00. The company raises its net profit growth forecast for 2006 to over 20% vs previous forecast of 18%-20%, reportedly. Separately, the company is in talks to acquire the third largest Austrian constructor Alpine Mayreder Bau for €500 million, writes Cinco Dias citing Austrian paper Kronen Zeitung.
METROVACESA was down €0.95 to €71.20. Sacresa, owned by the Sanahuja family, will not be able to raise its bid for the company to 26% from the original 20%, writes El Pais. The CNMV has blocked Sacresa's improved offer for 26% at €80. Sacresa already controls 24.3% of the company and so will be forced to either launch a full bid for 100% or drop the offer. Sacresa was hoping to sell 0.3% of the company and so stay below the 50% limit. Chairman Rivero and his business partner Bautista Soler have made an offer for 26% of the company at €80.
Switzerland
NESTLE was up CHF2.50 to CHF378.50. L'Oreal will start a new buyback program to the tune of €1.25 billion in the next 12 months, representing almost 3% of its capital. Reminder: The company owns about 25% of the French cosmetics group.
KUEHNE & NAGEL was up CHF2.25 to CHF87.25. The European Commission has cleared the j/v between the company and Scottish & Newcastle.
France
EADS was up €0.52 to €21.74 Brazilian airline TAM acquires 37 additional aircraft. The order includes 15 A319, 16 A320 and 6 A330 to be delivered until 2010. This comes in addition to last year's contract for 29 A320 planes. Separately, JP Morgan reduces target to €24 from €24 due to lower LT Airbus margins and lower peer multiples.
NEXANS was down €2.00 to €56.00. Goldman Sachs trims target to €68.06 from €92.63 to reflect the higher than expected debt and broker's reduced estimates. says this represents 17% potential upside to the current share price. The broker has lowered 2007-2009 EPS estimates by c.30% to reflect higher interest charges due to the increased basic net debt (pre-convertible) and higher tax charges due to an increase in broker's estimated tax rate. Keeps buy rating. Separately, the company launches €212 million convertible bond issue which could be increased to €280 million, aimed at financing general corporate purposes and targeted acquisitions.
UK
PARTY GAMING was up £0.00 to £1.14. The company is on the brink of unveiling plans to expand into sports betting via a series of acquisitions to be funded with the proceeds of a bond issue that could raise as much as £500 million, The Guardian reports.
DIAGEO was up £0.04 to £9.15... Dresdner Kleinwort cuts to add from buy , and ups its target to £9.55 from £9.45. Credit Suisse says the company 's trading statement provides clear evidence that the company is on course and gaining momentum. Reiterates outperform rating and price target of £10. The company anticipates organic net sales growth to be 6% for year to June 2006 and plans to return £1.4 billion to shareholders. Maintains FY organic operating profit growth at 7%. Expects to deliver organic operating profit growth at least equal to last year and sees organic net sales growth to be in line with that achieved in the current year. says impact of exchange rate movements on reported pretax profit is expected to be about £30 million.
Netherlands
ROYAL DUTCH SHELL (NL) was up €0.44 to €26.05. The company joins up with Dutch public transport company Connexxion Holding and bus builder MAN Truck & Bus to build a hydrogen bus fleet in Rotterdam, according to Platts. It says buses will be fuelled from a combined gasoline-hydrogen service station from the company , which will be the first in Holland.
AEGON was up €0.33 to €13.16. Gilissen upgrades to buy from hold given a lower stock price due to recent market falls. The broker sees growth margins for the company improving, especially in the UK, Netherlands and the US. Points out that high interest rates are positive for the insurer. Maintains target of €15.
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