Monday 28 November, 5:00 PM GMT (Thomson Financial): European markets
ended the day lower, unable to build on last week's momentum. Only the
insurance sector managed to buck the trend. Amongst the headlines,
ThyssenKrupp managed to trump rival Arcelor with a 4.8 Canadian billion
dollars bid for Canadian steel producer Dofasco, while shares in Swisscom
fell on the possibility of management changes following disagreements with
the Swiss government over foreign takeovers.
Elsewhere, Royal Ahold settled a class action for 945 million euros while
Rexam was reported to be pondering a possible 3 billion pounds approach
for Saint-Gobain's bottle making arm. In the healthcare sector, shares in
Actelion ended sharply lower on disappointing clinical trial data while
Novartis sold its Nutrition & Sante business unit to ABN AMRO Capital
France for 220 million euros. Meanwhile, shares in Rhodia soared after it
secured United Nations approval for its project to reduce greenhouse gas
emissions at its Onsan facility in South Korea.
In the oil & gas sector, BP announced plans to double its investment in
alternative and renewable energies while Statoil announced 10-year
agreement to deliver 500 million cubic metres of gas per annum from
October 2007 to Scottish Power.
London's FTSE-100 Index fell by 46.40 points or 0.84% to 5477.40, while
Paris's CAC-40 Index weakened by 25.17 points or 0.55% to 4575.31.
Frankfurt's DAX Index ended down by 17.68 points or 0.34% to 5176.59 and
Milan's S&P MIB Index dropped by 180 points or 0.52% to 34,256. The
pan-European blue chip Dow Jones Stoxx 50 Index declined by 31.05 points
or 0.94% to 3280.47.
* ThyssenKrupp submitted a friendly takeover bid for Canadian steel
producer Dofasco at 61.50 Canadian dollars per share. The offer values
Dofasco's equity at a total of 4.8 billion dollars, which represents a 40%
premium over Dofasco's closing share price on November 22, the day prior
to the announcement of a 56.00 dollars per share hostile takeover bid from
rival Arcelor.
* Royal Ahold reached an agreement with the lead plaintiffs to settle the
securities class action in the United States for 945 million
euros -equivalent to US$1.1 billion. This came on the eve of the
publication of its third quarter results.
* Shares in pharmaceuticals group Actelion ended sharply lower on news
that a clinical trial application of its Tracleer drug to patients
suffering from either idiopathic pulmonary fibrosis or pulmonary fibrosis
related to Systemic Sclerosis showed no improvements in their conditions.
* Newspaper reports suggested the possibility of management changes at
Swisscom, fuelled by rumours that its chief executive Jens Alder may step
down as the Swiss government -a majority shareholder in the company-
continues to resist the possibility of foreign takeovers ahead of Swisscom
's planned privatisation.
* SAP and Accenture were selected by the China Minsheng Banking
Corporation to build a core banking system for CMBC. The agreement was
formalized at a signing ceremony in Beijing.
* BP announced plans to double its investment in alternative and renewable
energies to create a new low carbon power business, which could
potentially deliver revenues of around US$6 billion a year within the next
decade. Building on BP Solar, which expects to reach revenues of US$1
billion in 2008, BP Alternative Energy invest in solar, wind, hydrogen and
combined-cycle-gas-turbine power generation.
* According to the U.K. Telegraph newspaper, GlaxoSmithKline will use
clinical data at a research seminar this week as a way of revealing
details of a potential blockbuster cancer drug. The drug, known as
eltrombopag, is still in the early stages of development
* The Daily telegraph newspaper also indicated that Rexam might be
interested in taking over Saint Gobain's glass bottle business as a means
of growing its own glass business. This fuelled speculation of a possible
3 billion pounds approach for the unit.
* Rhodia jumped after securing United Nations approval for its project to
reduce greenhouse gas emissions at its Onsan facility in South Korea. With
this decision, the group acquired the final consent needed to deploy the
project, which will become operational by end of 2006.
* Novartis sold its Nutrition & Sante business unit to ABN AMRO Capital
France for 220 million euros and the deal is expected to be accomplished
by the first quarter of 2006.
* Statoil announced 10-year agreement to deliver 500 million cubic metres
of gas per annum from October 2007 to Scottish Power.
Simon.Tse@Thomson.com; Thomson Financial
This is Thomson Financial Corporate Services Europe Market Commentary.
The information herein is believed to be true and accurate. If you have
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SOURCE Thomson Financial Corporate Group
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