European Indexes Soar; Spain Raises

Arthi Gupta
20 Apr, 2011
New York City

European indexes surged ahead of earnings. Spain successfully raised

[R]12:30 PM Frankfurt – European indexes surged ahead of earnings. Spain successfully raised €3.4 billion from the sale of bonds. ProSiebenSat.1 S agreed to sell its TV and print units for €1.23 billion. Peugeot revenues rose 10% reflecting growth in emerging markets.[/R]

World indexes traded higher after upbeat global economic data and corporate earnings.

Spain raised €3.4 billion today from its sale of bonds maturing in 2021 and 2024, reports said. The Treasury was targeting proceeds between €2.5 billion and €3.5 billion.

Also today, Portugal is set to sell €0.75 billion to €1 billion of 3-month and 206-day bills.

Germany''s producer price inflation slowed to 6.2% in March from 6.4% in February, data from the Federal Statistics Office showed.

The Bank of England minutes showed that six members of the Monetary Policy Committee voted to retain the key interest rate at 0.5% in April, while three members preferred a rate hike. Andrew Sentance, Spencer Dale and Martin Weale sought an increase in the key interest rate.

In Paris CAC-40 Index gained 91.48 or 2.34% to 4,000.06 and in Frankfurt DAX index edged higher 189.75 or 2.70% to 7,229.06.

ProSiebenSat.1 Sells TV and Print Units

ProSiebenSat.1 Group, the German broadcasting company agreed to sell its TV and print operations in the Netherlands and its TV unit in Belgium for a combined enterprise value of €1.225 billion.

The Netherlands units will be sold to a media consortium, comprising Sanoma Corp. and Talpa Holding N.V., subject to merger clearance. The TV business in Belgium will be sold to a media consortium of Sanoma, Corelio N.V. and Waterman & Waterman CVA.

The deal is expected to significantly reduce the company''s net financial debt.

Hanover Insurance Sets Forth Offer To Buy Chaucer Holdings

The Hanover Insurance Group, Inc. said that it will acquire 100% of Chaucer Holdings PLC subject to satisfaction of the conditions set forth in its offer. Chaucer shareholders would receive 56 pence per share in cash, including the 2.7 pence per share dividend announced by Chaucer on March 7 for an aggregate transaction value of about £313 million.

The offer values Chaucer at around 1.26 times estimated tangible book value per share as of December 31, 2010, after adjusting for the effects of Chaucer''s recently announced estimated catastrophe activity.

Gainers & Losers

BHP Billiton Ltd. gained 0.45% to $98.42 after the miner reported a 7% increase in iron ore production for the third quarter, while production of metallurgical coal declined 18%, due to persistent wet weather, which is expected to impact sales and unit costs for the remainder of 2011.

Deutsche Boerse AG rose 1.86% to €53.74 after the exchange operator said it remains committed to pursuing a tie-up with NYSE Euronext.

Heineken N.V. fell 1.17% to €39.74 after the Dutch beer brewer and seller reported first quarter revenue increased 22% to €3.59 billion. Organic revenue grew 3.6% on higher volumes but price and sales mix was stable.

Net profit for the quarter amounted to €151 million. Organically, net profit increased substantially due to higher EBIT and lower interest costs.

Banca Popolare di Milano Scarl plunged 7.13% to €2.35 after the Italian mutual bank said it would raise up to €1.2 billion via a rights issue to shareholders to comply with stringent capital requirements imposed by the Bank of Italy.

MeVis Medical Solutions AG increased 1.27% to €8.00 after the medical imaging software company, posted a consolidated net loss for fiscal year 2010 of €8.4 million compared to net income of €0.4 million in the previous year.

PSA Peugeot Citroën S.A. surged 4.77% to €28.47 after the French car maker said first quarter revenues rose 10.2% to €15.41 billion from €13.99 billion in the previous year, supported by growth in emerging markets.

Roche Holding AG climbed 2.03% to €135.80 after the Swiss pharmaceutical giant said the U.S. Food and Drug Administration approved its cobas HPV test to identify women at highest risk for developing cervical cancer.