Tuesday 20 December, 10:15 AM GMT (Thomson Financial): European markets
have opened slightly lower, following on from a lacklustre performance on Wall
Street and unable to replicate a robust performance in Tokyo. In corporate
news, ABB is one step closer to resolving its asbestos related litigation with
a U.S. bankruptcy court confirming the revised reorganisation plan for its
Combustion Engineering unit.
In the banking sector, BNP Paribas has acquired a 51% stake in the
Ukrainian banking group UkrSibbank, while Bank of Ireland Group has purchased
a 71.5% stake in Guggenheim Alternative Asset Management. Old Mutual has
enough support to proceed with its hostile bid for Sweden's largest insurer
Skandia, while Zurich Financial Services will propose the election of Donald
T. Nicolaisen to the Board of Directors. Elsewhere, Danish wind turbine
manufacturer Vestas Wind Systems has received a U.S. order from Horizon Wind
Energy, while GPC Biotech and Pharmion Corporation have entered into a co-
development and license agreement for satraplatin.
London's FTSE-100 Index is down by 1.50 points or 0.03% to 5,538.30, while
Paris's CAC-40 Index is down 4.34 points or 0.09% to 4,690.52. Frankfurt's DAX
Index is down 6.70 points or 0.13% to 5,343.48 and Milan's S&P MIB Index is
unchanged to 35,347.0. The pan-European blue chip Dow Jones Stoxx 50 Index is
down 4.0.3 points or 0.12% to 3,333.58.
* Swiss engineering group ABB is trading higher after a U.S. Bankruptcy
Court confirmed the revised plan of reorganisation for its Combustion
Engineering (CE) unit, This follows a vote by asbestos claimants, in
which they overwhelmingly approved the plan of reorganization, The plan
will protect ABB and its subsidiaries against current and future
claims, Under the plan, ABB has committed US$1.43 billion for a trust
fund for claims against CE.
* BNP Paribas has acquired a 51% stake in UkrSibbank and has entered into
a long-term partnership to jointly continue the development of the
bank. With this acquisition, BNP Paribas enters the rapidly expanding
and consolidating Ukrainian banking market with a top five market
position, a solid franchise and a recognised and trusted brand name.
Former controlling shareholders Mr Yaroslavsky and Mr Galiyev will
remain shareholders in the bank with a combined 49% shareholding.
* Bank of Ireland Group has purchased a 71.5% stake in Guggenheim
Alternative Asset Management, a US fund of hedge funds manager with an
estimated US$184 million in cash.
* Old Mutual has enough support to proceed with its hostile bid for
Sweden's largest insurer Skandia according to news of validated
acceptances for the offer, representing 62.5% of the total number of
shares and votes in Skandia.
* Zurich Financial Services says its Board of Directors will propose to
the 2006 Annual General Meeting of shareholders on April 20 the
election of Donald T. Nicolaisen to the Board of Directors.
* ABN Amro has incurred a civil penalty of US$80 million in connection
with deficiencies within its U.S. dollar clearing operations at its New
York branch and violations of regulations originating at its branch in
Dubai.
* Rentokil Initial's deficit of its U.K. pension scheme as at 30 November
2005 is estimated to be 325 million. An agreement has been reached
between the company and the trustees to make an immediate payment of
200 million pounds, with the remaining deficit being met by a series of
payments ending no later than January 2012. Rentokil has decided to
address its pension scheme deficit by proposing to close the defined
benefits section of its scheme for the future accrual of benefits for
active members.
* Danish wind turbine manufacturer Vestas Wind Systems has received a
U.S. order from Horizon Wind Energy for 600 Mega Watts (MW) of V82-1.65
MW and V80-1.8 MW wind turbines, with an option for an additional 200
MW.
* GPC Biotech and Pharmion Corporation have entered into a co-development
and license agreement for satraplatin, the only oral platinum-based
compound in advanced clinical development. The drug has shown promising
results in a study of first-line treatment of patients with hormone-
refractory prostate cancer (HPRC) and is currently the subject of a
phase III trial as second-line chemotherapy treatment for patients with
HRPC.
* E.ON's planned investments for the next three years will total
approximately 18.6 billion euros, intended above all, to reinforce
security of supply in its markets. Almost 90 % of the total will be
capital expenditure on property, plant and equipment. Most of the
investments will serve to modernise or build power stations and grids,
while 1.2 billion euros will be used for renewable energy. Around 2.3
billion euros has been earmarked for financial investments, especially
in Eastern Europe and in the gas production sector.
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
questions please e-mail James Sang at james.sang@tfn.com. For more information
about Thomson Financial, please visit our web site at
http://www.thomsonfinancial.com. For more financial information at your fingertips,
please visit http://www.irchannel.com.
SOURCE Thomson Financial Corporate Group
back to top
