Markets & Finance

On the Move: Tate & Lyle, Corus, Suez


Plus:Endesa, Infineon, Fiat and other European companies making headlines Friday

From Standard & Poor's European MarketScope

UK

INTERCONTINENTAL HOTELS was up £0.54 to £13.09. Shares gained in heavy volume yesterday on rumors of a £15/sh bid from Starwood Capital, the FT reported.

CORUS (CGA) was up £0.05 to £5.42. India's Economic Times reported that Tata Steel may offer as much as £6.00 per share for the company to counter a bid from CIA SIDERURGICA NACIONAL.

TATE & LYLE was up £0.08 to £7.29. Bid rumors continued to swirl after a report in The Independent that the company could get a bid offer from private equity at £10.00/sh. However, sources said that the rise could also be due to a covering up of short positions.

France

SUEZ (SZE) was up €0.25 to €38.60. Pinault's holding Artemis confirmed that it is considering an offer for the company and said it has financing for an offer.

SCHNEIDER was up €2.45 to €92.00. Exane BNP Paribas upgraded the company to outperform from neutral and kept its target price at €89.60. In results news, the company announced fourth quarter sales of €3.66 billion representing 12.3% year-over-year growth.

VINCI was up €5.00 to €103.60. Cheuvreux upgraded the company to outperform from underperform, raising its target to €125 from €100, on news that Francois Pinault's Artemis holding has purchased a 5.1% stake in the company for €1 billion.

Germany

DEUTSCHE BOERSE was up €3.45 to €159.90. Citing sources familiar to the company, the WSJ wrote that the company is considering plans to break up into divisions. Such a step would create more value for the individual units and make them more attractive for potential buyers.

THYSSEN KRUPP was down €0.38 to €35.91. At its AGM, the company reaffirmed that the Krupp Foundation should have the right to three supervisory board seats. Investors have been critical of proposals for another seat after it already raised its take to a blocking minority in December.

INFINEON (IFX) was down €0.40 to €10.69. The broker forecasts that DRAM prices will weaken in the first quarter of 2007 with ASPs falling 15% q/q.

Italy

FIAT (FIA) was up €0.45 to €15.44. UBS upgraded the company to buy from neutral and raised its target to €20 from €16. It regards the company as the best play on the 'deconsolidation of weak businesses' trend, as management believes it will be technically possible to deconsolidate Auto by late 2007.

Netherlands

HAGEMEYER was up €0.04 to €3.58. Rabo noted that Rexel issued its fourth quarter sales figures and believes that the read-through for the company is slightly positive. In a separate move, the broker adjusted its estimates for the sharp decline in copper prices in recent weeks.

Nordics

TELENOR was up NOK2.50 to NOK128.00. Cheuvreux and Bear Stearns and Cheuvreux upped their target on the company. The latter noted that Kyivstar in Ukraine added 2.4 million subscribers in December and it expects the high net intake to dilute ARPU and margins, which should spur revenue growth further in 2007.

TIETOENATOR was up €0.25 to €20.55. Cheuvreux downgraded the company to underperform from outperform and cut its target to €20 vs. €27.

Spain

SACYR-VALLEHERMOSO was up €2.14 to €45.37. The company's shares gained amid talk that one of its major shareholders could be increasing its stake in the group, according to a trading source. Furthermore, Interdin, Morgan Stanley and UBS are said to be the biggest buyers, leading to speculation that a large fund could be building a position.

ENDESA was down €0.31 to €37.59. Gas Natural was set to drop its bid for the company next week, reported El Mundo. Repsol's chairman was reported elsewhere as saying that it will be difficult for Gas Natural to increase its bid to compete with E.On (EON).

Switzerland

STRAUMANN was down CHF7.25 to CHF310.75. The company's oral regenerative product unit Biora has received a warning letter from the FDA which indicated that its dental bone grafting materials are on import detention in the US because of concerns relating to the maintenance of quality system documentation and procedures.

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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