Monday 5 December, 10:15 AM GMT (Thomson Financial): European markets are
trading slightly lower as investors pause from last week's activities. In the
telecoms sector, Swisscom has bowed to pressure from its majority shareholder
the Swiss government by ending M&A talks with eircom, while Virgin Mobile
Holdings has received an approach from NTL that may or may not lead to a
formal offer being made for the company.
In other M&A news, Singapore's state-owned investment group Temasek may
try and block DP World's bid for P&O or launch a counter-bid, while technology
group Thomson has acquired a 33.33% stake in Canopus, a Japan-based leader in
high-definition desktop video editing software. Tate & Lyle has announced the
acquisition of two food ingredient groups for 74 million pounds, while Airbus,
the commercial aircraft unit of EADS is reported to be on the cusp of securing
a major order of around 150 aircraft from China.
London's FTSE-100 Index is down by 21.60 points or 0.39% to 5506.50, while
Paris's CAC-40 Index is lower by 11.12 points or 0.24% to 4651.38. Frankfurt's
DAX Index has dropped by 11.54 points or 0.22% to 5296.45 but Milan's S&P MIB
Index is up slightly, by 11 points or 0.03% to 34,756. The pan-European blue
chip Dow Jones Stoxx 50 Index has weakened by 9.65 points or 0.29% to 3335.90.
* Swisscom's Board of Directors has said it will formulate a new strategy
for the company and has assured the government that it will not make any
decisions on acquisitions of holdings in foreign telecoms companies with
a public service mandate until the government's strategic goals for 2006
to 2009 have come into force. Swisscom added that it had broken off
talks with eircom of Ireland, adding that under the current environment
it sees no possibility of a takeover bid.
* In a stock-exchange disclosure Singapore's state-owned investment group
Temasek said it had purchased a 3.24% stake in Peninsular & Oriental
Steam Navigation's (P&O). This has prompted speculation that the company
may try and block DP World's bid for P&O or launch a counter-bid.
* Thomson has acquired 33.33% stake in Canopus, a Japan-based leader in
high-definition desktop video editing software, through a private
transaction with Chairman and Chief Executive Officer, Hiroshi Yamada,
and members of his immediate family. It will also launch a public tender
offer for the remaining Canopus shares. The value of the private
transaction combined with the pending tender offer would come to 91.3
million euros.
* Tate & Lyle has announced the acquisition of U.S. specialty food
ingredients group Continental Custom Ingredients and the Italian based
Cesalpinia for 74 million pounds.
* Shares in Virgin Mobile Holdings have opened sharply higher after
receiving an approach from NTL that may or may not lead to a formal
offer being made for the company.
* EADS is trading higher on press reports that its commercial aircraft
unit Airbus is about to secure a major order for around 150 aircraft
from China, with an announcement expected as early as today.
* U.K. based Aberdeen Asset Management has returned to profit, with full
year pre-tax profits of 13 million pounds compared to a loss of 87.6
million pounds in the prior year. Turnover has risen to 155.9 million
pounds from 140 million pounds last year, with funds under management
more than doubling to 59.7 billion pounds from 22.1 billion pounds in
the previous year. The company said the acquisition of the Deutsche
Asset Management had substantially increased its scale, diversification
and expanded product range.
* Shares in Hypo Real Estate are trading higher on expectations that
Deutsche Boerse's Working Committee for Equity Indices will add the
company to the DAX30 index.
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 any
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SOURCE Thomson Financial Corporate Group
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