Bloomberg News

France Telecom, Glencore, Roche: European Equity Preview

April 10, 2012

The following companies’ shares may have unusual moves in European (SXXP) trading. Stock symbols are in parentheses and prices are from the most recent close.

The Stoxx Europe 600 Index gained 0.1 percent to 259.07 on April 5. The Stoxx 50 Index (SX5P) decreased less than 0.1 percent to 2,427.31. The Euro Stoxx 50 Index (SX5E), a benchmark measure for nations using the euro, declined 0.3 percent to 2,392.54.

Adidas AG (ADS) (ADS GY): The German sporting-goods maker plans to reduce its portfolio of about 47,000 products by a quarter to help it reach earnings targets, Frankfurter Allgemeine Zeitung reported, citing Chief Executive Officer Herbert Hainer. The shares gained 1.6 percent to 59.41 euros.

Credit Agricole SA (ACA) : France’s third-biggest lender and hedge fund Magnetar Capital LLC were sued by Intesa Sanpaolo SpA (ISP) , which alleged both defrauded it when it invested in a collateralized debt obligation in 2006. Credit Agricole shares fell 2 percent to 4.16 euros. Intesa shares declined 1 percent to 1.24 euros.

Alstom SA (ALO) , Electricite de France SA (EDF FP), Iberdrola SA (IBE) : The companies won French government contracts to build offshore wind farms. Alstom shares advanced 0.9 percent to 27.99 euros. EDF shares lost 2.1 percent to 16.86 euros. Iberdrola shares fell 0.8 percent to 4 euros.

AstraZeneca Plc (AZN) : An unidentified holder of the drugmaker said Chief Executive Officer David Brennan is “under intense pressure” and should be replaced with Chief Financial Officer Simon Lowth, the Financial Times reported. The shares lost 0.1 percent to 2,777 pence.

Fondiaria-SAI SpA (FSA) and Unipol Gruppo Finanziario SpA (UNI) : The firms may struggle to reach their cost-savings goal after they merge to become Italy’s second-largest insurer, Federico Faccio, analyst at Fitch Ratings, said in an interview. Fondiaria shares dropped 1.7 percent to 97 cents. Unipol lost 3.2 percent to 21.29 euros.

France Telecom SA (FTE) : An employee shareholder fund that owns more than 3 percent of the French phone company will propose on June 5 cutting the 2011 dividend to 1 euro a share, from a planned 1.40 euros, Les Echos reported. The shares fell 0.4 percent to 10.63 euros.

Glencore International Plc (GLEN) : The world’s largest publicly traded commodities supplier, along with En+ Group, was sued by Sual Partners, according to three people with knowledge of the matter. Sual is accusing En+ and Glencore in a London court of breaching a 2007 shareholder agreement, said the people, who declined to be identified because the information isn’t public. The shares increased 5.8 percent to 411.8 pence.

International Power Plc (IPR) : GDF Suez SA (GSZ) is unlikely to improve its potential offer to buy shares it doesn’t already own in U.K. utility International Power before April 10, the Wall Street Journal reported, citing an unidentified person familiar with the matter. International Power advanced 1.3 percent to 407.5 pence. GDF Suez shares gained less than 0.1 percent to 18.61 euros.

Roche Holding AG (ROG) : The Basel, Switzerland-based drugmaker said in a statement April 6 that it’s “willing” to study “additional value” in its bid for Illumina Inc. (ILMN US) after a proxy-advisory firm recommended that the target company’s shareholders reject the hostile offer. Roche shares declined 0.6 percent to 157.5 Swiss francs.

Rockhopper Exploration Plc (RKH) : The oil explorer may have reserves of 350,000 barrels off the Falkland Islands and plans to start extracting the crude in 2016, Buenos Aires-based newspaper Clarin said, citing the U.K. company. The shares dropped 1.3 percent to 319 pence.

Sanofi (SAN) : France’s biggest drugmaker’s two patents on the cancer drug Taxotere were ruled invalid and unenforceable by a U.S. court. The shares lost 1 percent to 56.48 euros.

Siemens AG (SIE) (SIE GY): Chief Financial Officer Joe Kaeser said that some of the German company’s industrial units are performing better than last year, and that earlier concerns that weakening economies would damage businesses such as industry automation didn’t materialize, Euro am Sonntag reported, citing an interview. The shares lost 0.1 percent to 73.88 euros.

Sports Direct International Plc (SPD) : The sports- clothing retailer plans to boost the number of stores in continental Europe to 400 from 88, the Sunday Express reported, citing Chief Executive Officer Dave Forsey. The shares gained 1.6 percent to 285 pence.

Tesco Plc (TSCO) : The U.K. supermarket operator’s third- largest investor, Legal & General Investment Management, questioned the future of the retailer’s U.S. and banking businesses as the company nears completion of a strategic review, the Sunday Times reported, citing the shareholder. The shares declined 0.4 percent to 324.5 pence.

Thomas Cook Group Plc (TCG) : The U.K. travel company said it’s in advanced talks with its banking group on extending its financing arrangements, according to an e-mailed statement. The shares advanced 2.5 percent to 20.5 pence.

Total SA (FP) : Europe’s third-largest oil company said an onsite team has determined that pumping mud to stop a leaking North Sea well at the Elgin offshore platform may be “achievable.” The shares rose 0.8 percent to 38.21 euros.

To contact the reporters on this story: Alexis Xydias in London at axydias@bloomberg.net; Joseph Ciolli in New York at jciolli@bloomberg.net.

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net


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