European Indexes Higher; General Mills Acquires Yoplait

Arthi Gupta
01 Jul, 2011
New York City

The European indexes rose after the Greek parliament approved privatization plan demanded by foreign lenders. General Mills completed acquisition of Yoplait for $1.2 billion. KBC Group finalized Centea sale for

[R]1:30 PM Frankfurt – The European indexes rose after the Greek parliament approved privatization plan demanded by foreign lenders. General Mills completed acquisition of Yoplait for $1.2 billion. KBC Group finalized Centea sale for €527 million.[/R]

European indexes edged higher after the Greek parliament approved the austerity measures that include spending cuts, tax cuts, and a 50 billion euro privatization plan necessary to secure the next tranche of aid from the European Union, the International Monetary Fund and the European Central Bank.

Euro-zone manufacturing growth slowed to an 18-month low in June, Markit Economics said. The final Markit Manufacturing Purchasing Managers'' Index fell to 52 in June from 54.6 in May and unchanged from the earlier flash estimate.

Separately, the seasonally adjusted jobless rate of the euro-zone remained stable at 9.9% in May, data from Eurostat said.

In Paris CAC-40 Index gained 4.47 or 0.12% to 3,986.68 and in Frankfurt DAX index edged higher 9.99 or 0.14% to 7,386.23. For the week, the CAC-40 Index surged 5.31%.

Asian markets turned lower after China Federation of Logistics and Purchasing said its purchasing managers'' index fell to 50.9 in June from 52 in May, third monthly decline in a row.

KBC Group Finalizes Centea Sale

KBC Group NV and Crédit Agricole Group (Belgium) will finalize the sale of Centea NV, a subsidiary of KBC Group for an amount of €527 million. KBC will also receive a dividend of €66 million from Centea for fiscal 2010.

The deal will free up around €0.4 billion of capital for KBC, primarily by reducing risk-weighted assets by €4.2 billion.

Vodafone Sells Polkomtel Stake

Vodafone Group Plc agreed to sell its entire 24.4% interest in Polkomtel, a telecommunications operator in Poland to Spartan Capital Holdings SP. z o.o, an investment vehicle controlled by Zygmunt Solorz-Zak, for €920 million cash or £815 million before tax and transaction costs.

Net proceeds from the sale of Vodafone’s stake will be used to reduce its net debt.

General Mills Completes Yoplait Acquisition

General Mills completed the acquisition of a 51% controlling interest in French yogurt maker Yoplait S.A.S., and a 50% interest in a related entity that holds the worldwide Yoplait brands, from PAI Partners and Sodiaal in a transaction valued at approximately $1.2 billion.

The remaining ownership stakes in both entities will continue to be held by Sodiaal, France’s leading dairy cooperative.

Gainers & Losers

AkzoNobel NV fell 0.29% to €43.38 after the manufacturer of paints and specialty chemicals said it agreed to buy from New York-based Integrated Botanical Technologies its patented Zeta Fraction technology, which is transforming how plant-based chemistry is used. Financial details were not revealed.

ThyssenKrupp AG declined 1.34% to €35.35 after the German steel maker reported talks on the sale of its shipbuilding business to Abu Dhabi MAR have been terminated.

UBS AG gained 1.37% to Sfr15.54 after the Swiss financial services firm said its board will nominate former Deutsche Bundesbank President Axel Weber for election to the board at the Annual General Meeting on May 3, 2012.

ProSiebenSat.1 Media AG surged 5.6% to €20.68 after broker comments lifted the broadcaster stock.