Wednesday 4 January, 10:15 AM GMT (Thomson Financial): European markets
have opened broadly higher on the back of overnight gains in Asia and the U.S.
as the minutes from last month's Federal Open Market Committee meeting
indicated a wind down in the pace of interest rate hikes.
In corporate news, Next is trading higher after it raised its full year
guidance on he back of a bullish trading update while Panalpina is sharply
lower after accounting errors were revealed, leading to the resignation of its
chief executive. Alstom has effectively announced its eventual exit from the
shipbuilding industry with a minority stake in a joint venture with Aker Yards
and the sale of its investment in 2010.
Amongst M&A stories, BASF has offered to acquire U.S. based Engelhard for
US$4.9 billion, while Banca Intesa has launched an offer to buy the remaining
65% of shares in Bosnia-Herzegovina's UPI Banka that it does not already own.
London's FTSE-100 Index has risen by 15.50 points or 0.27% to 5697.00,
while Paris's CAC-40 Index has added 38.89 points or 0.81% to 4815.87.
Frankfurt's DAX Index is higher by 33.93 points or 0.62% to 5494.61 and
Milan's S&P MIB Index has gained 193 points or 0.53% to 36,286. The pan-
European blue chip Dow Jones Stoxx 50 Index has climbed by 18.59 points or
0.55% to 3398.31.
* U.K. fashion retail group Next has raised its full year guidance, with
full year pre-tax profits forecast to be in the 435-450 million pounds
range, exceeding market expectations. Meanwhile, its trading statement
has revealed a 9.8% year-on-year rise in combined sales for Next Retail
and Next Directory for the period from 1 August to 24 December 2005.
* Shares in global transport and logistics group Panalpina are sharply
lower on accounting errors made by a manager at its airline management
unit, with incurred losses by manipulating the booking records over a
period of 14 months. Group Chief Executive Bruno Sidler has offered his
resignation and has left the company. The incident will have a negative
impact on the operating results for 2005 in the region of 22 million
Swiss francs and 11 million francs for 2004.
* Alstom and Aker Yards have formed a shipbuilding joint venture with a
focus on high value added ships, including world-class cruise ships.
Aker Yards would own 75% of this new company while Alstom says it will
commit itself to keep the remaining 25% until 2010. Aker Yards would pay
50 million euros for the 75% stake of the new company. Depending on the
financial performance, the remaining 25% would be sold to Aker Yards for
up to 125 million euros in 2010.
* German chemicals group BASF has offered to acquire U.S. based Engelhard
Corporation, a leading supplier of goods for catalysis and surface
finishing, for US$37.00 per share or an aggregate of US$4.9 billion.
* Banca Intesa has launched an offer to buy the remaining 65% of shares in
Bosnia-Herzegovina's UPI Banka that it does not already own for 30.1
million euros.
Simon.Tse@Thomson.com; Thomson Financial
This is Thomson Financial Corporate Services Europe Market Commentary. The
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SOURCE Thomson Financial Corporate Group
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