Bloomberg News

Diageo, EDF, G4S, Renault, Swatch, UBS: European Equity Preview

October 24, 2011

Oct. 24 (Bloomberg) -- The following companies’ shares may have unusual moves in European trading. Stock symbols are in parentheses.

The Stoxx Europe 600 Index rose 2.5 percent to 238.93. The Stoxx 50 Index gained 2.3 percent to 2,279.01. The Euro Stoxx 50 Index, a benchmark measure for nations using the euro, jumped 2.9 percent to 2,337.51.

ArcelorMittal (MT NA): The world’s largest steelmaker has temporarily halted a furnace at its Dabrowa Gornicza plant in Poland due to “the order intake for the coming months,” company spokeswoman Lynn Robbroeckx said in an e-mail. The company will restart the furnace when “market conditions allow it,” she said. The shares climbed 5 percent to 13.68 euros.

Deutsche Telekom AG (DTE GY): Europe’s largest phone company plans to cut costs to help meet earnings targets as the company fails to keep pace in acquiring new customers, WirtschaftsWoche said, citing an interview with executive board member Niek Jan van Damme. The shares rose 0.4 percent to 9.3 euros.

Deutsche Bank AG (DBK GR): Deutsche Bank rejected a report in Der Spiegel magazine that Chief Executive Officer Josef Ackermann is being criticized internally for not sufficiently looking after the company’s day-to-day operations as he leads talks on the private sector’s contribution to aid Greece. The stock rose 4.2 percent to 27.5 euros.

Deutsche Telekom AG (DTE GR): The German company’s $39 billion sale of T-Mobile USA Inc. to AT&T Inc. is unlikely to receive U.S. court approval at a February hearing, Communications Workers of America President Larry Cohen told Focus magazine. The shares rose 0.4 percent to 9.24 euros.

Diageo Plc (DGE LN): The world’s largest distiller may move its London head office overseas if the U.K. government doesn’t abolish the 50 percent income tax rate for those earning more than 150,000 pounds ($239,300) a year, the Mail on Sunday reported, citing an interview with Chief Executive Officer Paul Walsh. The shares rose 0.9 percent to 1,331.5 pence.

Electricite de France SA (EDF FP): The French power company may offer investors of Edison SpA (EDN IM) between 1.15 euros ($1.60) and 1.3 euros a share for their stake in the holding company that controls 30 percent of the Italian utility, Il Sole 24 Ore reported, without saying how it got the information. EDF shares rose 3.7 percent to 22.54 euros. Edison gained 0.5 percent to 94 euro cents.

E.ON AG (EOAN GY): Germany’s largest utility halted the Oskarshamn-2 nuclear reactor in Sweden after a fire in the turbine plant, TT said, citing plant spokesman Anders Oesterberg. The stock rose 4.5 percent to 17.14 euros.

F&C Asset Management Plc (FCAM LN): F&C, which oversees the U.K.’s oldest investment fund, will unveil a strategic review this week, the Sunday Telegraph reported, without saying where it got the information. F&C will look at ways to reduce debt, and the company is unlikely to propose any dividend increases, the Telegraph said. The stock advanced 1.6 percent to 62.2 pence.

G4S Plc (GFS LN): The world’s largest security provider plans to sell parts of ISS Holdings A/S in France should it complete the takeover of the cleaning-services company, a spokesman, who declined to be identified, said. The shares were up 0.5 percent to 242.3 pence.

Nobel Biocare Holding AG (NOBN VX): EQT Partners AB and Bain Capital LLC are considering a purchase of dental implant maker Nobel Biocare, NZZ am Sonntag reported, citing two unidentified sources. The shares rose 9.4 percent to 9.95 Swiss francs.

Premier Foods Plc (PFD LN): The maker of Hovis bread and Mr. Kipling cakes paid almost 230 million pounds to banks and debt-restructuring advisers in the past year, more than twice its market value, the Sunday Times reported. The shares added 3.4 percent to 4.1 pence.

Renault SA (RNO FP): The French car maker recalled 78,000 vehicles worldwide, including 22,975 in France, citing potential problems with valve half-cones that could lead to engine damage, Ouest France reported, citing an unidentified company spokesman. The shares jumped 5.6 percent to 27.52 euros.

Repsol YPF SA (REP SM): Spain’s biggest oil company and RWE Dea AG of Germany signed concession contracts with Portugal for surveying and exploration rights in the Lagosta and Lagostim areas off the Algarve coast in southern Portugal. Repsol gained 1.3 percent to 21.68 euros.

Royal Bank of Scotland Group Plc (RBS LN): China Investment Corp. and Blackstone Group LP will each invest 50 million pounds to acquire part of the 1.4 billion pound real estate-related non-performing loans package being sold by Royal Bank of Scotland, the 21st Century Business Herald reported, citing unidentified sources. RBS shares rose 3.4 percent to 24.43 pence.

Swatch Group AG (UHR VX): The Swiss watch company’s sales this year will “clearly exceed” 7 billion Swiss francs ($7.9 billion), while growth adjusted for currency swings may reach 9 percent to 11 percent in 2012, NZZ am Sonntag reported, citing Chief Executive Officer Nick Hayek. The shares advanced 2.6 percent to 356.4 francs.

UBS AG (UBSN VX): Switzerland’s largest bank plans to cut its return-on-equity target to between 10 percent and 15 percent, 5 percentage points lower than targeted under former Chief Executive Oswald Gruebel, SonntagsZeitung said, citing an unidentified manager at the bank. UBS rose 3.9 percent to 10.99 francs.

--Editors: Stephen Kleege, John Simpson

To contact the reporter on this story: Kaitlyn Kiernan in New York at kkiernan2@bloomberg.net; To contact the reporter on this story: Patricia Kuo in London at pkuo2@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net


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