European Indexes Lower, Statoil Sells Retail Business for $2.8 B

Arthi Gupta
18 Apr, 2012
New York City

The European indexes traded lower and the Euro area swung to deficit in February. Argentina rejected a $10.5 billion compensation claim from Repsol. Canada-based Alimentation agreed to acquire Statoil Fuel & Retail for $2.8 billion.

[R]1:30 PM Frankfurt – The European indexes traded lower and the Euro area swung to deficit in February. Argentina rejected a $10.5 billion compensation claim from Repsol. Canada-based Alimentation agreed to acquire Statoil Fuel & Retail for $2.8 billion.[/R]

The European indexes edged lower a day after Spain successfully completed bond auction and yields trended lower. Investors also took a note of larger financing available from the International Monetary Fund to bolster the euro zone bailout plan.

Separately, the IMF lifted its global economic growth outlook to 3.5% for this year.

French President Nicolas Sarkozy told the local television channel BFM TV that a stronger euro hurts exporters and revved up the pressure on the European Central Bank as the president campaigns for his re-election.

In Paris trading, the CAC-40 Index declined 33.98 or 1% to 3,258.53 and in Frankfurt the DAX Index edged lower 41.85 or 0.6% to 6,759.20.

The yield on Spain’s benchmark 10 year bonds declined seven basis points to 5.82% and the Italian bond yields fell four basis points to 5.43%.

Euro-zone Current Account Swings to Deficit

The euro-zone current account swung to a seasonally adjusted deficit of €1.3 billion in February, from the €3.7 billion surplus in January, the European Central Bank said today.

Statoil Accepts Alimentation Bid

Alimentation Couche-Tard Inc., the Canada-based convenience store operator agreed to acquire Statoil Fuel & Retail ASA for a cash consideration of NOK 53 per share, valuing the total share capital of the company at NOK 15.9 billion or $2.8 billion. The offer is at a premium of 53 % to the current trading price.

In addition, Statoil ASA has committed to tender its 54% interest in Statoil Fuel & Retail to the offer.

Cameron to Buy Unit from TTS Group

Cameron International Corp. agreed to acquire the drilling equipment business of TTS Energy Division from TTS Group ASA in an all cash transaction valued at $270 million.

Gainers & Losers

ASML Holding N.V. slumped 3% to €36.78 after the chip-equipment maker said first quarter net sales dropped 14% to €1.25 billion from €1.45 billion a year ago. Net income in the quarter declined 29% to €282 million or 68 cents per share from €395 million or 90 cents per share last year.

Heineken N.V. soared 3.8% to €43.90 after the brewer reported revenue grew 6.8% to €3.834 billion. Net profit rose 16% to €175 million compared with €151 million in the first quarter of 2011.

LVMH Moët Hennessy Louis Vuitton SA fell 0.7% to €129.60 after the maker of luxury goods reported first quarter revenue climbed 25% to €6.58 billion from €5.25 billion reported last year.

Repsol YPF SA, the Spanish energy giant dropped 1.4% to €16.19 after the Argentine government rejected a $10.5 billion compensation claim from Repsol for its YPF SA unit.

SGL Carbon SE plummeted 3.7% to €33.90 after the producer of carbon and graphite products said first quarter sales improved 5% to €382 million from €364 million last year.

Syngenta AG fell 3.1% to Sfr313.60 after the agri-business said first quarter group sales climbed 7% to $4.3 billion, from $4.02 billion last year.