Markets & Finance

On the Move: GSK, SAP, Alcatel-Lucent


Plus:Roche, Ferrovial, Statoil and other European companies making headlines Tuesday

From Standard & Poor's European MarketScope

UK

VODAFONE (VOD) was down £0.01 to £1.45. The company announced that it has agreed to sell its 25% interest in Swisscom Mobile to Swisscom (SCM) for a cash consideration of CHF4.25 billion.

GLAXOSMITHKLINE (GSK) was down £0.07 to £13.37. Genmab and the company announced a worldwide agreement to co-develop and commercialize HuMax-CD20, a fully human monoclonal antibody in late stage development for CD20 positive B-cell chronic lymphocytic leukemia and follicular non-Hodgkin's lymphoma and in Phase II for rheumatoid arthritis.

VEDANTA was down £0.51 to £11.72. The company lost 4,120 tons of copper during a shutdown of the company 's Nchanga tailings leach plant in Konkola, Zambia. The plant was shut on Nov. 6 after a burst pipe spilled slurry into the Kafue River.

WOOD GROUP was up £0.14 to £2.59. The company said that in a strong global oil & gas and improving power market, it is strengthening its market position and continuing its record growth.

France

ALCATEL-LUCENT (ALU) was down €0.20 to €10.78. Lehman Brothers said that many of the weaker data points point to weakness in the company, namely muted DSL spending at the RBOCs, primarily key customers AT&T (T) and BellSouth (BLS).

EDF was up €0.40 to €55.65. ING raised its target to €53 from €45. The broker said that the recent share-price performance has reflected growing optimism about the removal of the regulated tariff structure in France.

MAUREL ET PROM was down €1.04 to €16.10. The company said that the Loufika Prodond-1D exploration well failed to find the Vandji sandstone reservoir.

Germany

SAP (SAP) was down €1.60 to €157.83. Oracle (ORCL) reported a 21% rise in second quarter profit, but sales of new software application licenses were weaker than market expectations, causing the stock to slide some 3%. The company 's arch rival talked of an inability to close deals in the quarter for the shortfall, rather than a general sector slowdown.

NORDDEUTSCHE was down €0.24 to €22.41. Fiscal 2005/06 pretax profit was shy of expectations - coming in at €103 million, up from €90 million last time.

Italy

PIRELLI REAL ESTATE was down €1.27 to €51.18. The company's shares dipped at the market open as Morgan Stanley placed 857,500 of the company's shares (2% of share capital) in an accelerated book-build.

Netherlands

CORUS (CGA) was up €0.03 to €7.86. The UK takeover panel is likely to set a deadline for both bidders to make their final offers and end the uncertainty looming over the company's future. The Independent said that the bidding war for the company could be over Wednesday as it held an emergency general meeting to discuss competing bids from the Indian group Tata Steel and Brazilian rival CSN.

Nordics

GENMAB was up DKK59.00 to DKK401.00 on the GSK deal.

STATOIL was down NOK4.25 to NOK165.75. Cheuvreux downgraded the company to underperform from outperform and reduced its target price to NOK170 vs. NOK185.

Spain

SANTANDER was down €0.19 to €14.03. The company will launch a bid on Capitalia before the end of the year, wrote ElConfidencial.com citing Italy's Il Sole 24 Ore.

FERROVIAL was down €0.95 to €72.90. BAA said that UK airports passenger traffic rose 3.1% to 82 million in the 6 months to Sept. 30. It added that Naples traffic rose 13.1% to 3.1 million and Budapest traffic rose 5.1% to 4.9 million.

Switzerland

SWISSCOM (SCM) was up CHF4.75 to CHF457.25 on news that it would buy back Vodafone's 25% stake in Swisscom Mobile for a total price of CHF4.25 billion.

SPEEDEL was down CHF27.60 to CHF165.50. The company is halting a key Phase III clinical trial of SPP301, or Avosentan, in diabetic kidney disease in the interests of patient safety, it said.

ROCHE was down CHF1.40 to CHF219.10. Two lupus patients died from a rare brain infection after taking the Genentech (DNA) and Biogen (BIIB) drug Rituxan, according to US health officials. Rituxan is authorized for treating lymphoma and rheumatoid arthritis, but not for lupus.

Alexander Wisch, Rocio Opazo-Aniotz, Claudia Perotti, Michael Sanderson, Emma Stevenson, Mariella Mongio, Pawan Girglani, Guarav Panchal, Julien Manrique, Isabell Witt, Sara Oscarsson, Ben Marino, John West

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