Friday 9 December, 1:00 PM GMT (Thomson Financial): European markets
continue to trade in negative territory ahead of the opening session on
Wall Street. However, the retail, basic resources and media sectors are
bucking the trend.
Amongst the headlines, Schering is still under pressure on press reports
that it is trying to acquire the rights for Betaferon from Chiron for
about 1 billion euros as well as a delay to the review of its
contraceptive treatment Yaz.
Berkeley Group has posted an 81.4% year-on-year rise in first half profits
while Bradford & Bingley expects full year underlying profit before tax to
be comfortably ahead of market expectations. In M&A news, VNU is trading
higher on reports that two private equity consortiums are mulling over
potential bids for the Dutch publisher, while the London Stock Exchange
has rejected an offer from Macquarie Bank.
London's FTSE-100 Index has fallen by 17.90 points or 0.32% to 5513.20,
while Paris's CAC-40 Index has declined by 18.96 points or 0.41% to
4650.97. Frankfurt's DAX Index is lower by 13.56 points or 0.26% to
5273.19 and Milan's S&P MIB Index has dropped by 125 points or 0.36% to
34,743. The pan-European blue chip Dow Jones Stoxx 50 Index has weakened
by 9.87 points or 0.29% to 3339.23.
* According to a report in the Financial Times Deutschland, Schering is
trying to acquire the rights for Betaferon from Chiron for about 1 billion
euros. The latter is currently in the process of being snapped up by Swiss
rival Novartis. Meanwhile, the U.S. Food and Drug Administration has
informed Schering's U.S. affiliate Berlex, that it is extending the review
period regarding its new oral contraceptive Yaz.
* U.K. property developer Berkeley Group Holdings has posted first half
profits of 142.4 million pounds compared to 78.5 million pounds in the
same half last year. Operating profits have dipped to 89.2 million pounds
from 90.2 million pounds last year, on a 19.9% year-on-year rise in
revenues to 503.1 million pounds. The company said the housing market has
remained stable over the last six months with a return to normal market
conditions after a period of moderation.
* Bradford & Bingley expects full year underlying profit before tax to be
comfortably ahead of market expectations. It said the lending business has
performed well during the second half of the year, with new lending
volumes significantly higher than in the first half. Bradford & Bingley
added that the credit quality of its fully secured lending book remained
strong and that arrears had continued to increase moderately from
historically low levels but remained well within corporate guidance.
* VNU is trading higher on press reports, which suggest that two private
equity consortiums are mulling over potential bids for the Dutch
publisher.
* Soft drinks company Britvic has starting trading on the London Stock
Exchange, at the issue price of 230 pence per share.
* The Board of the London Stock Exchange has rejected outright a proposal
from Macquarie Bank about making a cash offer to acquire the company for
580 pence per share. The LSE says the offer fundamentally undervalues the
company and lacks any strategic or commercial credibility.
* French Connection has opened sharply lower after it issued a
disappointing trading update. The clothing company said that an
improvement in its interim results had not been sufficient to meet its
targets, and combined with a shortfall in wholesale orders for summer
2006, had resulted in pressure on the group's financial forecasts. It now
anticipates profit before tax for the year to 31 January 2006 to be in the
11 to 14 million pounds range.
* Belgian telecom services group Telindus has decided to make available a
set of information on the group's business and financial performance to
several potential bidders.
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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