European Indexes Higher; TNT Net Falls 14%, Commerzbank Net Up 41%

Arthi Gupta
02 May, 2011
New York City

European indexes gained after manufacturing activity rebounded in April. The UK home prices declined in April. Terex Industrial Holding offered $1.3 billion for Demag Cranes. PPR agrees to acquire Volcom for $607.5 million.

[R]2:00 PM Frankfurt – European indexes gained after manufacturing activity rebounded in April. The UK home prices declined in April. Terex Industrial Holding offered $1.3 billion for Demag Cranes. PPR agrees to acquire Volcom for $607.5 million.[/R]

European markets traded higher after manufacturing growth accelerated in Germany and France and Euro-zone growth rose at the second fastest pace in eleven years.

World indexes traded higher after the U.S. forces killed Al Qaeda leader Osama bin Laden.

U.S. President Barack Obama told the nation late Sunday evening that the U.S. military forces last week engaged and killed terrorist leader Osama bin Laden in Pakistan.

In Paris CAC-40 Index gained 13.29 or 0.32% to 4,120.21 and in Frankfurt DAX index edged higher 51.81 or 0.69% to 7,566.27.

The UK market is closed for a public holiday.

Euro-zone Manufacturing Activity Improves

Euro-zone manufacturing activity in April showed the second-strongest pace of expansion since August 2000, according to a survey conducted by Markit Economics.

The final Markit Manufacturing Purchasing Managers'' Index rose to 58 in April from 57.5 in March and above the flash estimate of 57.7, Markit said today. The growth was largely led by Germany, France and Netherlands.

German Manufacturing Growth Rises

Germany''s manufacturing sector expanded at a faster-than-expected pace in April, results of survey by Markit Economics and BME showed on Monday.

The purchasing managers'' index for the manufacturing sector rose to 62 in April from 60.9 in March.

French Manufacturing Sector Strengthens

The performance of the French manufacturing sector strengthened in April, data from the Markit Economics showed on Monday.

The headline Purchasing Managers'' Index - a seasonally adjusted index designed to measure the performance of the manufacturing economy rose to a five-month high of 57.5 in April from 55.4 in March.

UK Home Prices Decline

The average asking price for a home in the United Kingdom declined 3.3% on year in April, following the 3.2% annual contraction in March, property intelligence group Hometrack said on Monday, standing at £153,100.

Home prices were flat on month in April, Hometrack said, after easing 0.1% in March.

Terex Bids for Demag Cranes

Terex Corp., the farm and construction machinery firm said its German unit, Terex Industrial Holding AG decided to make a voluntary cash public tender offer of €41.75 per share to buy Germany''s Demag Cranes AG. The total consideration would be €884 million or about $1.3 billion.

The combined entity is expected to have total revenues of about $5.8 billion in 2010 with a strong footprint in Europe and emerging markets, especially in China.

PPR Acquires Volcom

PPR, the French retailer announced a deal to acquire Costa Mesa, California-based clothing and footwear company Volcom, Inc $24.50 share or for a total equity value of $607.5 million.

Under the deal, a new wholly owned subsidiary of PPR will make a cash tender offer for Volcom''s shares. The offer price represents a premium of 37% over the three-month average trading price of Volcom shares.

Gainers & Losers

Clariant AG gained 2.62% to Sfr18.42 after the Swiss chemical maker was upgraded to “buy” from “hold” by Bank Vontobel AG.

Commerzbank AG rose 0.94% to $6.41 after the German banking firm reported first quarter gross revenues were about €3.6 billion, unchanged from the prior year. Net profit in the quarter rose 41.2% to €1 billion from €708 million in the prior-year quarter, helped by lower provision for loan losses.

LyondellBassell Industries NV climbed 0.14% to $44.50 after the Dutch chemicals and polymers maker said first quarter revenues climbed 25.5% to $12.25 billion from $9.76 billion. Net income in the quarter soared 6530% to $663 million from $10 million last year.

TNT NV fell 1.65% to €16.35 after the Dutch logistics firm said first quarter total revenues rose 4% to €1.11 billion from last year''s €1.07 billion. Profit in the quarter declined 14% to €123 million or 32.6 euro cents per share from €143 million or 38.4 euro cents per share in the same quarter last year.