Thursday 22 December, 1:00 PM GMT (Thomson Financial): European markets
are trading quietly lower as activity slows ahead of the festive holidays.
Newsflow is light, but of note, shares in Hilton Group remain higher after
it received expressions of interest in its Ladbrokes betting chain, while
BAE Systems is also higher after the U.K. signed a military agreement with
Saudi Arabia. However, on a weaker note, Roche is under pressure on
reports that the H5N1 strain of bird flu might be developing resistance to
the company's Tamiflu drug.
London's FTSE-100 Index is barely changed, having added 0.70 points or
0.01% to 5588.10, while Paris's CAC-40 Index has slipped by 2.51 points or
0.05% to 4749.90. Frankfurt's DAX Index is down by 9.10 points or 0.17% to
5388.13 and Milan's S&P MIB Index has fallen by 61 points or 0.17% to
35,742. The pan-European blue chip Dow Jones Stoxx 50 Index is lower by
10.18 points or 0.30% to 3353.36.
* Shares in Hilton Group remain higher after the company announced that it
had received expressions of interest in its Ladbrokes betting chain. The
group said it had great confidence in the future of the chain, but added
that it remained focused on discussions with Hilton Hotels Corporation
regarding the sale of its Hilton International hotels division.
* Shares in BAE Systems are also trading higher as the company continues
to draw interest after it confirmed on Wednesday that the U.K. had signed
an agreement with the Saudi government to modernize the country's armed
forces, which will include the supply of Eurofighter Typhoon aircraft,
which BAE Systems co-developed.
* EADS is also higher after low-cost airline easyJet exercised options for
20 additional A319 narrow-bodied aircraft for delivery during 2008 and
2009. The airline said the list price was about US$900 million, but added
that under the original agreement, signed in December 2002, it was granted
substantial price concessions.
* However, Roche is underperforming after press reports indicated that an
article in the New England Journal of Medicine had cast some doubt on the
overall efficacy of its Tamiflu treatment. According to the article, of
eight H5N1 bird flu patients being treated with the drug, four had died,
two of which had developed some resistance.
* Dutch Logistics group KFM remains in focus after it said it had entered
into merger talks with Denmark's DSV. KFM said DSV had advanced an
indicative cash offer of 38 euros per share, including any dividend for
2005, adding that a majority of KFM shareholders backed the offer. The
company indicated that talks were at an early stage but were serious and
constructive.
Olivier.Masson@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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