Tuesday 20 December, 1:00 PM GMT (Thomson Financial): European markets
have recovered from earlier intra-day losses and trading in mixed territory
ahead of the opening session on Wall Street. In corporate news, ABB is one
step closer to resolving its asbestos related litigation with a U.S.
bankruptcy court, confirming the revised reorganization 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 unchanged at 5,539.90, while Paris's CAC-40
Index is down 6.81 points or 0.15% to 4,688.05. Frankfurt's DAX Index is down
3.52 points or 0.07% to 5,346.66 and Milan's S&P MIB Index is up 74.0 points
or 0.21% to 35,421.0. The pan-European blue chip Dow Jones Stoxx 50 Index is
down 1.40 points or 0.04% to 3,336.21.
* Swiss engineering group ABB is trading higher after a U.S. Bankruptcy Court
confirmed the revised plan of reorganization 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 recognized 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 U.S. 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 pounds. 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 modernize 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.
* Gaz de France (GdF) has issued a profit warning, less than six months after
its partial privatization. The company said the French government's decision
Friday to veto a proposed increase in regulated gas tariffs for households and
small corporate customers will dent both its revenue and operating profit by
250 million euros in the first quarter of 2006. GdF said that since it has
been prevented from passing on the higher price of gas imports to some of its
customers, it will have lost revenue of 500 million euros in January and a
total of 750 million euros at the start of April.
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
