Sanofi Net Falls, Peugeot Net Ahead of Estimate; LSE, TMX to Merge

Devan Biswas
09 Feb, 2011
New York City

European markets were on the defensive after mixed earnings in the region. PSA Peugeot Citroen said it will open a factory in India and sales rose 16% and earnings were ahead of previous estimate. LSE agreed to merge with Canada based TMX Group. Sanofi declined after it estimated lower net.

[R]1:30 PM Frankfurt – European markets were on the defensive after mixed earnings in the region. PSA Peugeot Citroen said it will open a factory in India and sales rose 16% and earnings were ahead of previous estimate. LSE agreed to merge with Canada based TMX Group. Sanofi declined after it estimated lower net.[/R]

Market indexes in Europe edged lower tracking losses in commodities prices and a decline of near 1% loss in major markets in Asia.

DAX 30 index in Frankfurt at midday was nearly unchanged at 7,323.00 and FTSE 100 index declined 17.64 to 6,073.69. CAC 40 index in Paris traded lower 0.2%.

LSE soared more than 9% after it agreed to acquire Toronto based TMX Group in all-share transaction that valued the bourse at C$3.2 billion.

LSE and other exchanges in North America have been losing business to other private trading pools and non-exchange trading platforms.

LSE shareholders will control 55% of newly merged group and TNX shareholders will control 45%.

In a Regulatory News Service filing the exchange said TMX shareholders will receive 2.9963 LSE shares for each share held in TMX Group valuing the Canada based exchange at C42.68 a share.

Earnings Review

Mobistar SA declined 4% to 45.65 euros after Belgium based mobile telecom said it will cut dividend and profit will be lower than a year ago after the internetwork rate charges were cut by local regulators.

PageJaunes Groupe dropped 8% to 7.25 euros after the yellow page phone directory publisher said annual net in 2010 declined 11% to 244.9 million euros.

PSA Peugeot Citroen dropped nearly 3% to 30.41 euros after sales in 2010 increased 16% to 56 billion euros and operating earnings rose to 1.8 billion euros compared to 689 million euros a year ago. Net income in the year was 1.13 billion euros compared to 1.16 billion euros.

The French automaker also lifted its target for savings and increased earnings for the three years to 2012 to 3.7 billion euros. The auto maker is also looking for a site to build a factory in India as it searches for new markets. Indian auto sales in 2010 rose 31% and in January sales gained additional 26% to 184,000 units.

Reckitt Benckiser Group Plc declined 5.2% to 3,257 pence after it said current year sales will increase at a slower pace on the estimate of slower worldwide economic expansion.

Sanofi declined as much as 2% to 50.20 euros after the French drugmaker estimated profit decline between 5% and 10% this year. Earnings at the continuing businesses prior to acquisition of Genzyme were 1.84 billion euros.

Statoil ASA declined 2.7% 138.50 kroner after Norway’s largest oil company reported fourth quarter net increased to 9.53 billion kroner from 7.16 billion kroner. Earnings per share increased to 2.99 kroner from 2.25 kroner.

Syngental AG gained more than 3% to Sfr 315.20 after the largest agro-chemical maker said it will buy back shares or declare dividend to return to shareholders $850 million.