Deutsche Boerse Completes NYSE Merger; European Markets Rest

Arthi Gupta
08 Jul, 2011
New York City

The European indexes traded sideways and German exports gained 4.3% in May. NYSE Euronext shareholders approved merger with Deutsche Boerse. ING agreed to sell its car lease unit to BMW for $1 billion.

[R]1:00 PM Frankfurt – The European indexes traded sideways and German exports gained 4.3% in May. NYSE Euronext shareholders approved merger with Deutsche Boerse. ING agreed to sell its car lease unit to BMW for $1 billion.[/R]

U.S. indexes futures edged lower on global economic concerns. Asian markets traded higher after strong U.S. jobs data.

In Paris CAC-40 Index declined 6.05 or 0.15% to 3,973.77 and in Frankfurt DAX Index edged higher 18.95 or 0.25% to 7,490.39. For the week, the CAC-40 Index fell 0.85% and the DAX Index gained 0.95%.

German Exports Rebound

German exports advanced 4.3% on a monthly basis in May compared to the 5.6% drop in April, according to data released from the Federal Statistics Office today. Imports climbed 3.7% in May versus a 2.5% fall in April.

NYSE Euronext Gets Shareholders Approval

NYSE Euronext, Inc. said its shareholders approved the company''s $9.53 billion acquisition by Germany''s Deutsche Boerse AG to create the world''s largest stock and derivatives exchange.

Following the merger, Deutsche Boerse shareholders will own 60% of the combined entity and NYSE Euronext shareholders would own the remaining 40%.

The companies expect the deal to create synergies of €550 million or $798 million, including €400 million or $580 million in full run-rate cost savings and €150 million or $218 million in revenue enhancements.

ING Sells Car Lease Unit to BMW

ING Group NV, the Dutch financial services company agreed to sell it car lease division, ING Car Lease, for €700 million or $1 billion to BMW Group''s fleet management division Alphabet.

The deal will result in a net transaction result of €335 million and a capital release of €530 million.

Gainers & Losers

British Land Co Plc gained 0.17% to 606 pence after the real estate investment trust said it agreed to buy a portfolio of freehold and leasehold racket clubs from Societe Generale SA for £179 million.

Novartis AG rose 0.38% to Sfr52.35 after the multinational pharmaceutical company reported Phase III trial results showed more than one-third of patients taking Afinitor tablets experienced a 50% or greater reduction in the size of their subependymal giant cell astrocytomas, non-cancerous brain tumors associated with tuberous sclerosis complex.

Sanofi SA climbed 0.74% to €55.71 after the pharmaceutical company suspended the trial phase IIIb on its heart drug Multaq (dronedarone) as an indication for patients with permanent Atrial Fibrillation.

Telefonica SA fell 0.6% to €16.45 after the Spanish broadband and telecommunications provider said it reached an agreement with unions to cut 6,500 jobs in Spain over three years.

Vossloh AG plunged 13.29% to €82.70 after the German transport technology manufacturer forecasted fiscal year 2011 sales not to exceed €1.25 billion and EBIT to range from €120 million to €130 million, citing significant delays in Chinese high-speed railway lines.

This forecast revises the previous budget of sales at around €1.4 billion and an EBIT in excess of €160 million.

X5 Retail Group NV increased 1.4% to $42.20 after the Russia-based food retailer reported second quarter net retail sales surged 52% to $4.01 billion from $2.64 billion in the prior year.

The company further stated soft discounters segment saw a 9% comparable same store sales growth, and the supermarkets segment contributed an 18% in comparable sales.