Europe Movers: Centrica, Schroders, TNT Express

Nigel Thomas
25 Mar, 2013
New York City

Centrica agreed to buy natural gas from Cheniere worth

[R]2:50 PM Frankfurt – Centrica agreed to buy natural gas from Cheniere worth £10 billion. Schroders agreed to buy Cazenove for £424 million and said annual profit declined 10.3%. TNT Express targets €220 million in recurring savings by 2015 and sell assets in Brazil and China.[/R]

European markets gained after a late night deal between Cyprus and European lenders avoided the collapse of banking system on the island nation of 1.1 million people.

The deal will lean heavily on uninsured depositors to raise the needed 5.8 billion from Cyprus as a part of 10 billion bailout agreed by the troika of international lenders.

In London trading, FTSE 100 index rose 0.6% or 35.5 to 6,428 and in Frankfurt the DAX index gained 0.5% to 42.6 to 7,954.

In Paris, CAC 40 index added 0.5% or 18.8 to 3,789.

Centrica Plc gained 1.5% to 363 pence after the energy company agreed to a deal with Cheniere Energy Partners to import 89 billion cubic feet of liquefied natural gas a year worth £10 billion from North America to meet the demand from 1.8 million UK homes.

The British gas owner said contract is for an initial 20 year period with the option for a 10 year extension.

Schroders Plc increased 1.5% to 2,125 pence after the UK based fund manager agree to buy Cazenove Capital Holdings Limited for £424 million. Schroders will pay 135 pence a share in cash.

Schroders reported net revenue for the year ending in December fell 1.7% to £1.13 billion. For the year, profit after tax declined 10.3% to £283.2 million and diluted earnings per share slipped 9.5% to 101.3 pence.

The fund manager said operating profit dropped 12% £343.7 million and profit before tax slumped by 12% to £360 million.

TNT Express NV slipped 1.4% to €5.82 after the Netherlands based air courier plans to restructure its business and eliminate 4,000 jobs. The company has targeted €220 million in recurring savings by 2015 and plans to sell its operations in China and Brazil.

Vodafone Group Plc gained 3% to 188.92 pence after the UK based mobile company said it acquired 1.5 million shares from Barclays Capital Securities at 184.07 pence per share.