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European Stocks Rise for Second Day; Debenhams, E.ON Advance
Posted by: regli
Date: 03/07/2007 12:24PM
European Stocks Rise for Second Day; Debenhams, E.ON Advance
http://www.bloomberg.com/apps/news?pid=20601085&sid=aGOm_fhCkQTk&refer=europe
By Adria Cimino
March 7 (Bloomberg) -- European stocks advanced for a second day as investors bet takeovers will increase in the retail and gaming industries.
Debenhams Plc, the U.K.'s second-biggest department store chain, jumped the most in almost two weeks on speculation it may be bought, while Sportingbet Plc surged after the gaming company said it received an approach. E.ON AG reached a one-week high after Germany's largest utility reported earnings that topped analysts' estimates.
``There's still takeover activity and earnings are beating estimates,'' said Thierry Nardozi, who helps oversee $464 billion at SG Asset Management in Paris. ``The environment remains strong for stocks.''
The Dow Jones Stoxx 600 Index rebounded yesterday after losing 6.7 percent in the previous five days. Takeovers and better-than-expected earnings have fueled a four-year rally that lifted equities to a six-year high before the rout.
``Stocks still offer good value,'' said Kevin Gardiner, head of European equity strategy at HSBC Holdings Plc. ``The markets will probably deliver a good return if you have a three- to-six-month view.''
The Stoxx 600 added 0.5 percent to 361.65. The Euro Stoxx 50, a measure for the 13 nations sharing the euro, gained 0.3 percent and the Stoxx 50 rose 0.2 percent.
Indexes extended gains after the Dow Jones Industrial Average rose in early U.S. trading.
National Markets
National benchmarks advanced in 15 of the 18 western European markets. France's CAC 40 rose 0.3 percent as did Germany's DAX and the U.K.'s FTSE 100.
Debenhams climbed 4.9 percent to 182.5 pence on speculation the retailer may receive a takeover approach.
``Debenhams has often been talked about as a potential bid target, so it would be no surprise,'' said Kevin Lyne-Smith, who helps oversee $100 million at Julius Baer Holing AG's private banking division.
Andy Cornelius, an external spokesman for Debenhams, declined to comment.
Sportingbet, an Internet gaming company that lost most of its earnings after being forced out of the U.S., climbed 15 percent to 59 pence. Bwin Interactive Entertainment AG, an Austrian Web bookmaker, said it's in talks to buy Sportingbet.
The talks are at a ``very preliminary'' stage and ``may or may not lead to an offer,'' Bwin said. Bwin shares jumped 8.5 percent to 29.29 euros.
PartyGaming Plc, the world's biggest Internet poker company, surged 8.4 percent to 38.75 pence. Goldman increased its price estimate by 5.4 percent to 39 pence, saying the ``core non-U.S. poker business is performing well.''
E.ON, Endesa
E.ON gained 1.3 percent to 98.01 euros. Fourth-quarter profit more than doubled to 2.43 billion euros ($3.19 billion) after the company increased electricity prices to households in its home market. Profit of 2.02 billion euros was expected, according to a survey of six analysts.
Separately, E.ON, which has bid 41 billion euros for Endesa SA, dropped a demand yesterday that shareholders change company bylaws to facilitate the takeover. That may result in Enel SpA and other large Endesa investors being unable to form a voting majority, Expansion newspaper reported today.
Endesa shares added 2.2 percent to 38.51 euros.
Positive Market
Analysts foresee earnings at Stoxx 600 companies rising 7.4 percent on average in 2007, estimates compiled by Factset Research Systems Inc. show.
``We would still be positive on the market for the year,'' Lyne-Smith said. ``Overall, the economy is fairly robust.''
Bilfinger Berger AG, Germany's second-largest construction company, surged 4 percent to 62.79 euros.
``The shares jump on speculation that Balfour Beatty Plc is interested in Bilfinger,'' said Thomas Nagel, trader at Equinet in Frankfurt.
Tim Sharp, a spokesman for Balfour Beatty, the U.K.'s biggest builder, declined to comment on the speculation.
United Business Media Plc, the owner of Information Week magazine and PR Newswire, gained 4.3 percent to 781.5 pence. Goldman, Sachs & Co. raised its recommendation on the shares to ``buy'' from ``neutral,'' citing ``a good track record of achieving relatively high returns from acquisitions and further potential for cash return.''
Acambis Plc soared 6.3 percent to 127 pence. The company, which last year lost a contract to supply smallpox vaccines to the U.S., named a new chief executive officer, said its chief financial officer is leaving and announced it will fire about 40 workers this year.
ABN Amro
ABN Amro Holding NV climbed 1.3 percent to 27.13 euros. The biggest Dutch bank should consider a merger and not make any ``major acquisitions,'' one of its shareholders said today.
``All the stakeholders would benefit by way of a merger with another large group which has a proven track record in adding value,'' said Toscafund Asset Management LLP, a London- based hedge fund that holds more than 1 percent of ABN Amro.
Kontron AG advanced 4 percent to 11.54 euros. The German maker of miniature computers said preliminary sales rose more than 30 percent last year and that it will repay a 29 million- euro convertible bond early. Analysts at WestLB AG raised their share-price estimate to 15 euros from 13.2.
Johnston Press Plc, publisher of regional British newspapers including the Yorkshire Post, gained 3.4 percent to 430 pence after reporting 2006 profit that beat analysts' estimates.
Vallourec, Resolution
Vallourec SA slid 7.2 percent to 174.75 euros, the most since June, after the company forecast little-changed profitability for 2007. The world's second-largest maker of tubes used to drill for oil and gas said earnings before interest, taxes, depreciation and amortization will be ``just below'' 30 percent of sales in the first half of this year, down from 30.8 percent a year earlier.
Resolution Plc gained 3.4 percent to 644 pence. Britain's biggest administrator of closed life-insurance funds said CEO Paul Thompson will leave the company and be replaced by CFO Mike Biggs.
Scania AB climbed 3.7 percent to 530 kronor. Volkswagen AG raised its holding in Swedish truckmaker Scania as Europe's largest carmaker seeks to force a three-way merger with German rival MAN AG and its own commercial-vehicles unit. Volkswagen advanced 2.5 percent to 96.4 euros.
TUI AG jumped 3.2 percent to 17.91 euros after Europe's largest tour operator said investor Hamed El Chiaty now owns 3.12 percent in the company. Chiaty is based in Dubai, according to a regulatory filing.
Telekom Austria AG climbed the most in five months, rising 3.9 percent to 18.56 euros, after UBS AG recommended buying shares of the country's largest phone company. Charlotte Perfect, an analyst at UBS, upgraded the stock to ``buy'' from ``neutral,'' saying it underperformed the industry in the past six months.
http://www.bloomberg.com/apps/news?pid=20601085&sid=aGOm_fhCkQTk&refer=europe
By Adria Cimino
March 7 (Bloomberg) -- European stocks advanced for a second day as investors bet takeovers will increase in the retail and gaming industries.
Debenhams Plc, the U.K.'s second-biggest department store chain, jumped the most in almost two weeks on speculation it may be bought, while Sportingbet Plc surged after the gaming company said it received an approach. E.ON AG reached a one-week high after Germany's largest utility reported earnings that topped analysts' estimates.
``There's still takeover activity and earnings are beating estimates,'' said Thierry Nardozi, who helps oversee $464 billion at SG Asset Management in Paris. ``The environment remains strong for stocks.''
The Dow Jones Stoxx 600 Index rebounded yesterday after losing 6.7 percent in the previous five days. Takeovers and better-than-expected earnings have fueled a four-year rally that lifted equities to a six-year high before the rout.
``Stocks still offer good value,'' said Kevin Gardiner, head of European equity strategy at HSBC Holdings Plc. ``The markets will probably deliver a good return if you have a three- to-six-month view.''
The Stoxx 600 added 0.5 percent to 361.65. The Euro Stoxx 50, a measure for the 13 nations sharing the euro, gained 0.3 percent and the Stoxx 50 rose 0.2 percent.
Indexes extended gains after the Dow Jones Industrial Average rose in early U.S. trading.
National Markets
National benchmarks advanced in 15 of the 18 western European markets. France's CAC 40 rose 0.3 percent as did Germany's DAX and the U.K.'s FTSE 100.
Debenhams climbed 4.9 percent to 182.5 pence on speculation the retailer may receive a takeover approach.
``Debenhams has often been talked about as a potential bid target, so it would be no surprise,'' said Kevin Lyne-Smith, who helps oversee $100 million at Julius Baer Holing AG's private banking division.
Andy Cornelius, an external spokesman for Debenhams, declined to comment.
Sportingbet, an Internet gaming company that lost most of its earnings after being forced out of the U.S., climbed 15 percent to 59 pence. Bwin Interactive Entertainment AG, an Austrian Web bookmaker, said it's in talks to buy Sportingbet.
The talks are at a ``very preliminary'' stage and ``may or may not lead to an offer,'' Bwin said. Bwin shares jumped 8.5 percent to 29.29 euros.
PartyGaming Plc, the world's biggest Internet poker company, surged 8.4 percent to 38.75 pence. Goldman increased its price estimate by 5.4 percent to 39 pence, saying the ``core non-U.S. poker business is performing well.''
E.ON, Endesa
E.ON gained 1.3 percent to 98.01 euros. Fourth-quarter profit more than doubled to 2.43 billion euros ($3.19 billion) after the company increased electricity prices to households in its home market. Profit of 2.02 billion euros was expected, according to a survey of six analysts.
Separately, E.ON, which has bid 41 billion euros for Endesa SA, dropped a demand yesterday that shareholders change company bylaws to facilitate the takeover. That may result in Enel SpA and other large Endesa investors being unable to form a voting majority, Expansion newspaper reported today.
Endesa shares added 2.2 percent to 38.51 euros.
Positive Market
Analysts foresee earnings at Stoxx 600 companies rising 7.4 percent on average in 2007, estimates compiled by Factset Research Systems Inc. show.
``We would still be positive on the market for the year,'' Lyne-Smith said. ``Overall, the economy is fairly robust.''
Bilfinger Berger AG, Germany's second-largest construction company, surged 4 percent to 62.79 euros.
``The shares jump on speculation that Balfour Beatty Plc is interested in Bilfinger,'' said Thomas Nagel, trader at Equinet in Frankfurt.
Tim Sharp, a spokesman for Balfour Beatty, the U.K.'s biggest builder, declined to comment on the speculation.
United Business Media Plc, the owner of Information Week magazine and PR Newswire, gained 4.3 percent to 781.5 pence. Goldman, Sachs & Co. raised its recommendation on the shares to ``buy'' from ``neutral,'' citing ``a good track record of achieving relatively high returns from acquisitions and further potential for cash return.''
Acambis Plc soared 6.3 percent to 127 pence. The company, which last year lost a contract to supply smallpox vaccines to the U.S., named a new chief executive officer, said its chief financial officer is leaving and announced it will fire about 40 workers this year.
ABN Amro
ABN Amro Holding NV climbed 1.3 percent to 27.13 euros. The biggest Dutch bank should consider a merger and not make any ``major acquisitions,'' one of its shareholders said today.
``All the stakeholders would benefit by way of a merger with another large group which has a proven track record in adding value,'' said Toscafund Asset Management LLP, a London- based hedge fund that holds more than 1 percent of ABN Amro.
Kontron AG advanced 4 percent to 11.54 euros. The German maker of miniature computers said preliminary sales rose more than 30 percent last year and that it will repay a 29 million- euro convertible bond early. Analysts at WestLB AG raised their share-price estimate to 15 euros from 13.2.
Johnston Press Plc, publisher of regional British newspapers including the Yorkshire Post, gained 3.4 percent to 430 pence after reporting 2006 profit that beat analysts' estimates.
Vallourec, Resolution
Vallourec SA slid 7.2 percent to 174.75 euros, the most since June, after the company forecast little-changed profitability for 2007. The world's second-largest maker of tubes used to drill for oil and gas said earnings before interest, taxes, depreciation and amortization will be ``just below'' 30 percent of sales in the first half of this year, down from 30.8 percent a year earlier.
Resolution Plc gained 3.4 percent to 644 pence. Britain's biggest administrator of closed life-insurance funds said CEO Paul Thompson will leave the company and be replaced by CFO Mike Biggs.
Scania AB climbed 3.7 percent to 530 kronor. Volkswagen AG raised its holding in Swedish truckmaker Scania as Europe's largest carmaker seeks to force a three-way merger with German rival MAN AG and its own commercial-vehicles unit. Volkswagen advanced 2.5 percent to 96.4 euros.
TUI AG jumped 3.2 percent to 17.91 euros after Europe's largest tour operator said investor Hamed El Chiaty now owns 3.12 percent in the company. Chiaty is based in Dubai, according to a regulatory filing.
Telekom Austria AG climbed the most in five months, rising 3.9 percent to 18.56 euros, after UBS AG recommended buying shares of the country's largest phone company. Charlotte Perfect, an analyst at UBS, upgraded the stock to ``buy'' from ``neutral,'' saying it underperformed the industry in the past six months.
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