European Indexes Mixed; TOTAL Raised Stake in Italian Oil Field

Arthi Gupta
05 Jul, 2011
New York City

The European indexes traded sideways as investors focus on the next bailout conditions for Greece. U.S. based OM Group agreed to purchase Vacuumschmelze for

[R]2:20 PM Frankfurt – The European indexes traded sideways as investors focus on the next bailout conditions for Greece. U.S. based OM Group agreed to purchase Vacuumschmelze for €700 million. Total SA raised its equity stake in the Tempa Rossa field to 75%.[/R]

European markets edged lower in a cautious trading after the euro-zone retail sales declined 1.1% in May after rising 0.7% in April. The market jitters were also compounded by the ongoing uncertainty related to the next bailout conditions for Greece.

Fitch Ratings lifted the Republic of Estonia's long-term foreign and local currency Issuer Default Ratings to 'A+' from 'A', citing solid economic growth and strong public finances with a “stable” outlook.

In Paris CAC-40 Index declined 14.84 or 0.37% to 3,988.27 and in Frankfurt DAX index edged higher 16.24 or 0.22% to 7,459.20.

OM Group Buys Vacuumschmelze

OM Group, Inc., the specialty chemicals company agreed to purchase Vacuumschmelze GmbH & Co. KG of Hanau, Germany, the advanced materials and specialty magnetic maker for approximately €700 million or about $1.01 billion, including $50 million in common stock equity.

OM hopes to expand its portfolio of advanced energy materials and technology with the acquisition.

Total Raises Interest in Tempa Rossa Field

Total S.A., the French oil and gas major said it acquired interests from Esso Italiana, a subsidiary of Exxon Mobil Corp. in the Gorgoglione concession in Italy, which contains the Tempa Rossa field, and in two exploration licenses located in the same area thereby increasing its equity stake in the Tempa Rossa field to 75%.

Gainers & Losers

Nestlé SA gained 0.38% to Sfr52.90 after the global food maker entered in preliminary talks to acquire China based Hsu Fu Chi International Ltd.

Novartis AG rose 0.48% to Sfr51.80 after the Swiss drugmaker said an interim analysis of a Phase III study in women with advanced breast cancer showed that its Afinitor, or everolimus, tablets in combination with exemestane significantly extended progression-free survival, compared to placebo plus exemestane.

Royal Philips Electronics NV dipped 0.09% to €17.49.