Friday 30 December, 5:00 PM GMT (Thomson Financial): European markets
ended the day lower in quiet trade ahead of the new year, with many exchanges
closed next Monday. In corporate news, Ahold said it would have to set aside
US$50-US$60 million in charges related to its U.S. Foodservice unit, and cut
700 jobs across the U.S., while elsewhere, BAE Systems announced the sale of
its Atlas Elektronik unit.
London's FTSE-100 Index fell by 19.50 points or 0.35% to 5618.80, while
Paris's CAC-40 Index dropped by 57.70 points or 1.21% to 4715.23. Frankfurt's
DAX Index declined by 50.32 points or 0.92% to 5408.26 and Milan's S&P MIB
Index weakened by 253 points or 0.70% to 35,704. The pan-European blue chip
Dow Jones Stoxx 50 Index ended down by 21.74 points or 0.64% to 3349.10.
* Ahold said it expected to post US$50-US$60 million in charges related to
its U.S. Foodservice unit in the fourth quarter. Ahold said the charges
reflected planned workforce reduction, asset impairments, lease expenses
related to facilities to be exited and termination of contractual
obligations, adding that the 700 jobs would be lost across the U.S.,
including 500 administrative positions.
* BAE Systems agreed to sell Bremen-based naval electronics firm Atlas
Elektronik to TyssenKrupp Technologies and EADS for 145 million euros in
cash, adding that pension liabilities of 72.4 million euros would stay
with Atlas. In 2004, Atlas posted sales of 292.4 million euros,
generating earnings before interest and taxes of 9.3 million euros.
* LogicaCMG said it held a 46.8% stake in Unilog after the tender offer
for the firm closed on 28 December. The company added that separately
from the tender offer, it had bought a total of 1.86 million shares
during the offer period and on 29 December at an average price of 72.9
euros per share.
* Diageo said it would continue its share buyback programme during its
close period ahead of the publication of its interim results on 16
February.
* On the economics side, unemployment in France slipped to 9.6% in
November, compared to 9.7% in October, while inflation in Spain reached
3.8% in December according to preliminary estimates, compared to 3.4% in
November.
-- Olivier.Masson@Thomson.com; Thomson Financial
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SOURCE Thomson Financial Corporate Group
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