Markets & Finance

On the Move: Deutsche Telekom, Infineon, Prudential


Plus:Novartis, Statoil, Ahold and other European companies making headlines Monday

From Standard & Poor's European MarketScope

United Kingdom

PRUDENTIAL (PUK) was down £0.04 to £6.99. The company posted total fiscal year group insurance new business (APE) of £2.470 billion, +16%; UK retail £689 million, +14%; total UK £900 million, +1%; US insurance Jackson £613 million, +21%.

France

AIR LIQUIDE was up €3.40 to €180.40. ING upped its target to €170 from €152 and kept its hold rating. It noted that fourth quarter 2006 sales of €2.8 billion were below the consensus of €2.925 billion and fourth quarter 2005 sales of €2.827 billion.

SAINT GOBAIN was up €0.50 to €73.15. JP Morgan raised its target to €85 from €70, reiterating its overweight rating. It sees the potential for 16% upside in share value on management's margin plan.

Germany

DEUTSCHE TELEKOM (DT) was down €0.57 to €13.60. The company warned on profit (broker comments) after cautioning on earnings only six months ago. The company has cut up to €1.2 billion from its 2007 forecasts. The reduction in EBITDA comprised €0.8 billion from German wireline, €0.2 billion from German wireless and €0.2 billion from the action of the US$/ exchange rate on the contribution from T-Mobile USA.

INFINEON (IFX) was up €0.10 to €11.19. The company posted first quarter EBIT of €216 million (broker comment) with quarterly sales at €2.13 billion. Net profit for the quarter was €120 million.

HOCHTIEF was up €2.26 to €62.83. The German financial press cited the possibility of US construction firms wanting to buy a stake in the company should Australia's Macquarie Bank succeed in taking it over. Meanwhile, the company reportedly said it is unaware of any takeover attempt.

Netherlands

AHOLD was up €0.06 to €7.76. Industry sources said that the company's Albert Heijn reportedly grew sales by more than 10% in the last quarter of 2006. The company's trading update is due on Thursday.

SLIGRO FOOD was up €0.55 to €52.55. SNS Securities upgraded the company to hold from reduce and sets a price target of €54.

ROYAL DUTCH SHELL (RDS) was down €0.10 to €26.19. The company and Repsol (REP) have signed a deal with Iran worth US$10 billion to assess the feasibility of producing liquefied natural gas from the South Pars field, The Guardian reported.

Nordics

STATOIL was up NOK0.25 to NOK166.00. The company and Hydro have completed a value verification process following the agreement between the companies' boards of directors to merge Hydro's oil & gas activities with the company. The company's net interest-bearing debt was estimated to be NOK 14.3 billion at Dec. 31 2006.

Switzerland

NOVARTIS (NVS) was up CHF0.40 to CHF72.35 as Merrill Lynch added the company to its Europe 1 list. In the broker's view, the company's sector-average 2008 P/E rating (14.3x) undervalues the company's premium EPS growth rate, attractive Phase III pipeline and low off-patent exposure.

Italy

FIAT (FIA) was up €0.46 to €16.66. JP Morgan raised its target to €20.00 from €17.00, and rates the stock overweight.

Spain

IBERIA was up €0.10 to €3.10. UBS upgraded the company to buy from neutral and raised its target to €3.50 from €2.80. Lufthansa's CEO has reportedly told the FT Deutschland that he expects European airline consolidation to accelerate if talks to liberalize the market between the US and Europe fail.

INDITEX was up €1.10 to €42.10. UBS upgraded the company to buy from neutral and raised its target to €47.50 from €42.

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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