Friday 16 December, 10:15 AM GMT (Thomson Financial): European markets
have opened higher, supported by the German IFO expectations index, which
has risen to 99.6 versus 97.8 in November. In corporate news, both
Centrica and Persimmon expect their full year earnings to be in line with
their own guidance, while KBC Group has decided to repurchase and cancel 1
billion euros' worth of its own shares in 2006. In telecoms, the Dutch
State has agreed on the transfer and disposal of its special share in KPN,
while Belgacom has countered France Telecom with a higher offer for
Belgacom.
In M&A news, Euronext are trading higher reports that rival Deutsche
Boerse has made an informal merger approach for the exchange operator,
while reports suggest that Arcelor is close to launching a counterbid for
the Canadian steelmaker Dofasco. Last month, Thyssenkrupp launched a 3.5
billion euros bid for Dofasco.
London's FTSE-100 Index is up 45.60 points or 0.83% to 5,540.90, while
Paris's CAC-40 Index is up 20.10 points or 0.43% to 4693.24. Frankfurt's
DAX Index is up 33.52 points or 0.64% to 5,329.77 and Milan's S&P MIB
Index is up 54.0 points or 0.15% to 35,075. The pan-European blue chip
Dow Jones Stoxx 50 Index is up 19.95 points or 0.60% to 3,343.46.
* Persimmon says it expects to announce another set of strong results, in
line with the board's expectations. It expects once again to report an
increase in legal completions to 12,600 in the year to 31 December 2005,
versus 12,360 last year, with turnover of 2.3 billion pounds, up 8%
year-on-year. The average selling prices for the full year is expected to
be 180,500 pounds, up 5% year-on-year.
* Centrica expects full year group earnings to be in line with consensus
as gas prices for the winter months continue to be volatile and high on
fears of a cold winter and gas shortages. For the year as a whole, British
Gas's weighted average cost of gas will be around 37% higher year-on-year.
For 2006, Centrica says consumers will face another year of price
increases as all suppliers look to recover higher wholesale costs. The
Chancellor's announced increase in the Gas Supplementary Charge tax rate
will impact future earnings. In 2006, the group currently estimate the
overall effect to be around 80 million pounds.
* Gallaher Group confirms that overall current trading is in line with
expectations, with cigarette volumes increasing by 3.3% to 143.8 billion
in the first 10 months of 2005. This growth has been driven by market
share gains across central and eastern Europe, which have more than offset
declines in western Europe. Gallaher's strategic cigarette brands
collectively grew their sales volume by 12.6% in the period.
* KBC Group has reaffirmed its long-term vision and approved the
corresponding new organizational structure of the group. At the same time,
the Board of Directors have decided to repurchase and cancel 1 billion
euros' worth of KBC's own shares in 2006.
* Following the recent reduction by the Dutch State of its shareholding in
KPN (the sale of 165 million ordinary shares, thereby lowering its
shareholding in the company to approximately 8%), both parties have now
reached agreement on the transfer and disposal of the State's special
share in KPN. Effective as of today, KPN has repurchased the special share
for its nominal value of 48 eurocents.
* The board of directors of Telindus confirms it has received a higher
offer from Belgacom at a price of 16.60 euros per Telindus share. This has
topped a 15.8 euros offer from France Telecom for the Belgian
communications technology company made earlier this week.
* Novartis has decided to stop the development of NKS104 (pitavastatin), a
lipid-lowering agent in Phase II for the treatment of elevated total
cholesterol, after data from recent investigational trials have showed the
compound is no longer competitive enough for Novartis to invest further
resources. As a result, Novartis intends to record an impairment of US$266
million in the fourth quarter of 2005 to fully write off the remaining
value of this asset.
* Roche has announced that all four maintenance studies of the pivotal
Phase III renal program for its unique long-acting anti-anemia agent,
CERA, have been successfully completed.
* Dutch postal and logistics company TNT has nominated Henk van Dalen as
Chief Financial Officer and member of the Board of Management. He is a
currently member of the Managing Board and CFO of Royal DSM of the
Netherlands.
* Shares in Euronext are trading higher after a report in Le Figaro
suggests rival Deutsche Boerse has made an informal merger approach for
the exchange operator.
* According to report in the Frankfurter Allgemeine Zeitung, Arcelor is
close to launching a counterbid for the Canadian steelmaker Dofasco. Last
month, Thyssenkrupp launched a 3.5 billion euros bid for Dofasco.
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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