Wednesday 14 December, 5:00 PM GMT (Thomson Financial): Overall, European
markets ended the trading session lower despite overnight language from
the U.S Federal Reserve, which suggested an end to the current interest
rate hike cycle.
In corporate news, Bouygues announced a 26% year-on-year rise in
nine-month net profits, with raised full year guidance, while VNU expects
its 2005 earnings per share to be in line with its previous guidance. Puma
remained higher after a report in the Handelsblatt newspaper suggested
core shareholders were mulling over the possibility of making an offer for
the German sporting goods group, while GUS said its Experian unit had
acquired PriceGrabber.com, a leading provider of online comparison
shopping services in the U.S. for US$485 million. Finally, the French
government gave the green light for Eiffage, Vinci, and Abertis
Infraestructuras to acquire stakes in three toll-road companies.
London's FTSE-100 Index was up 13.90 points or 0.25% to 5,521.10, while
Paris's CAC-40 Index was down 18.55 points or 0.40% to 4,674.85.
Frankfurt's DAX Index was down 23.52 points or 0.44% to 5,286.76 and
Milan's S&P MIB Index was up 30.0 points or 0.09% to 35,002.0. The
pan-European blue chip Dow Jones Stoxx 50 Index was down 11.98 points or
0.36% to 3,333.92.
* French conglomerate Bouygues announced a net profit of 648 million euros
in the first nine months of 2005 versus 516 million euros last year, up
26%. Operating profit rose to 1.357 billion euros versus 1.168 billion
euros last year, on sales worth 17.84 billion euros versus 15.608 billion
euros last year. Looking ahead, its sales target for full-year 2005 was
raised again to 24 billion euros from the 23.6 billion euros figure
previously announced. As a result of a favorable business outlook for
2006, the group intends to increase its staff numbers and recruit 14,000
people, including 8,000 in France.
* Information and media group VNU expects its 2005 earnings per share to
be in line with its previous guidance of 0.85 to 0.90 euros, as its
businesses continue their overall solid performance in the second half.
Revenues are projected to be up midway between 5% and 6%, driven by a
double-digit increase from the Media Measurement & Information group. The
company said that while most of its businesses are performing well,
revenue growth overall will be slightly below VNU's previous guidance of
approximately 6%, due to difficult economic conditions in Europe. Finally,
VNU says it has received expressions of interest from various parties
regarding a possible acquisition of the company.
* Puma traded higher after a report in the Handelsblatt newspaper suggests
core shareholders are mulling over the possibility of making an offer for
the German sporting goods group. Guenter and Daniela Herz, former
co-owners of the German coffee retail chain Tchibo have a 25.27% stake in
Puma.
* U.K. retail and business services group GUS, announced that its Experian
unit had acquired PriceGrabber.com, a leading provider of online
comparison shopping services in the U.S for US$485 million.
* Autoroutes du Sud de la France said the French government had chosen
construction group Vinci to purchase the government's stake in the
toll-road concession holder. Meanwhile, a consortium led by rival Eiffage
has been chosen by the government to win the Autoroutes Paris-Rhin-Rhone
concession.
* France Telecom made a counterbid for Telindus, offering 15.80 euros a
share for the Belgian telecommunications company, according to a statement
from the Belgian financial watchdog CBFA. The bid was 17% more than a
hostile offer made by Belgacom of 13.5 euros a share, and its offer period
expires 20 December. Telindus had rejected Belgacom's bid, saying it was
too low, and has been trying to persuade investors not to back the offer.
* Western European passenger car registrations fell 2.8% in November,
although are up 0.1% in the year to November, showing stagnation in the
market, the trade association ACEA said. Renault saw the biggest fall in
year-on-year registrations, dropping 15.8%, while Volkswagen, saw
registrations rise 0.8%.
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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