Software AG, IDS Scheer Merger in Germany

Mukesh Buch
14 Jul, 2009
New York City

Banks and automobiles makers stocks gained in European trading. The sharply higher earnings from Goldman Sachs in New York lifted banking stocks in Europe and UK. Software AG proposed to acquire IDS Scheer AG in a bid that values the company at 477 million euros.

[R]7:00 PM Frankfurt, Paris; 2:00 PM New York – Banks and automobiles makers stocks gained in European trading. The sharply higher earnings from Goldman Sachs in New York lifted banking stocks in Europe and UK. Software AG proposed to acquireIDS Scheer AG in a bid that values the company at 477 million euros.[/R]

Financials and auto stocks led gainers in Frankfurt and Paris trading and in Zurich banks closed higher.

Goldman Sachs reported $3.49 billion in earnings in the second quarter or $4.93 a share on increase in underwriting fees and trading revenues in equities and bond markets.

The CAC-40 Index increased 29.79 or 0.98% to close at 3,081.87 and in Frankfurt DAX index higher 59.35 or 1.26% to close at 4,781.69. In Zurich trading SMI increased 49.76 or 0.94% to close at 5,365.05.

Gainers & Losers

Software AG decreased 5.7% to 47.36 euros after it bid 477 million euros to acquire IDS Scheer AG or 15 euros a share. The IDS Scheer shares surged 38% to 14.94 euros. The merger of two companies will create software and business process management provider with 6,000 employees and sales of 1 billion euros.

Q-Cells SE increased 14% to 11.32 euros after it reported second quarter operating loss of 62 million euros and said that it will miss its 2009 earnings estimate. The company estimated second quarter revenues of 142 million euros. The company also has cash short term available credit of 520 million euros.

Halloren Schokoladenfabrik AG reported first half sales increased 26% to 11.60 million euros and earnings before interest and taxes declined 26% to 0.6 million euros.

Deutsche Bank increased 2.6% to 46.70 euros after the earnings news on Goldman lifted sentiment across Europe. BNP Paribas added 3.1% and Societe Generale increased 2.5%.

Salzgitter AG increased 2.9% to 63.23 euros and ThyssenKrupp added 3.8% to 17.42 euros. Salzgitter said that new orders have lowered the number of workers on reduced work hour schedule.

Renault SA increased 4.2% to 23.81 euros. Nissan Motor, its Japanese partner in which it controls 44%, increased its annual production capacity to 460,000 from 360,000.

PSA Peugeot Citroen increased 2.7% to 17.40 euros.

Europe Markets Review

In London FTSE 100 Index closed higher 35.55 or 0.85% to 4,237.68, in Paris CAC 40 Index increased 29.79 or 0.98% to close at 3,081.87 and in Frankfurt DAX index higher 59.35 or 1.26% to close at 4,781.69. In Zurich trading SMI increased 49.76 or 0.94% to close at 5,365.05.

DAX Index Movers

Fresenius Medical Care AG & Co. KGaA led the decliners in the DAX index of 1.88% followed by losses in Bayer AG of 1.28%, in SAP AG of 0.70%, in Commerzbank AG of 0.61%, in Fresenius SE of 0.54%.

Bayerische Motoren Werke AG led gainers in the DAX index with a rise of 5.33% followed by increase in ThyssenKrupp AG of 3.99%, in MAN SE of 3.36%, in BASF SE of 2.83%, Deutsche Post AG of 2.44%.

CAC-40 Index Movers

Unibail-Rodamco SA led the decliners in the CAC-40 index of 1.29% followed by losses in Alcatel Lucent of 1.13%, in Carrefour SA of 0.81%, in Cap Gemini SA of 0.67%, in Pernod Ricard SA of 0.67%.

Dexia SA gainers in the CAC-40 index with a rise of 5.06% followed by gains in Renault SA of 4.22%, in Michelin SCA of 3.75%, in BNP Paribas Asset Management of 3.06%, in PSA Peugeot Citroen S.A. of 2.69%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 73 increased, 26 declined and 3 were unchanged.

Vodafone Group Plc decliners in the FTSE 100 index with a loss of 1.91% followed by losses in Diageo plc of 1.20%, in Legal & General Group Plc of 0.96%, in Tesco PLC of 0.94%, in Imperial Tobacco Group PLC of 0.93%.

Fresnillo Plc led gainers in the FTSE 100 index with a rise of 13.28% followed by increase in Lonmin plc of 9.34%, in Kazakhmys PLC of 8.38%, in Antofagasta plc of 6.47%, in Xstrata plc of 5.37%.