A.P Moeller Maersk Offers $1.3 B for Oil Fields

Mayank Mehta
22 Dec, 2009
New York City

European markets edged higher on the prospects of improved earnings in 2011 and speedier global markets recovery. A.P. Moeller Maersk agreed to pay $1.3 billion to acquire energy fields in the Gulf of Mexico. Areva T&D division received

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets edged higher on the prospects of improved earnings in 2011 and speedier global markets recovery. A.P. Moeller Maersk agreed to pay $1.3 billion to acquire energy fields in the Gulf of Mexico. Areva T&D division received €200 million contract from a Dubai utility.[/R]

German consumer confidence sentiment index for January as measured by Gfk AG declined to 3.3 from December index of 3.6. The survey of 2,000 households indicated economic expectations increased to 1.7 in December from 0.9 in November after dropping to minus 32.4 a year ago.

In London FTSE 100 Index closed higher 34.67 or 0.65% to 5,328.66, in Paris CAC 40 Index increased 26.32 or 0.68% to close at 3,898.38, in Frankfurt DAX index higher 15.16 or 0.26% to close at 5,945.69. In Zurich trading SMI increased 78.46 or 1.21% to close at 6,582.90.

A.P. Moeller Maersk A/S agreed to acquire fields in the Gulf of Mexico with recoverable oil of 200 million barrels from the U.S. based Devon Energy Corp for $1.3 billion in cash. Moeller plans to spend between $1.3 billion and $1.8 billion additional to develop fields.

The deep water fields include a 50% stake in Petrobras operated Cascade and 25% stake in Chevron Corp controlled Jack and St. Malo fields.

Gainers & Losers

Areva SA added 1.4% to €348.15 after the nuclear power station builder’s trading and distribution unit was awarded an order of €200 million from Dubai.

Belvedere SA soared 9.6% to €34.97 after the French vodka maker was reported by Les Echos to have received at least five bids for its Marie Brizard beverage division.

Credit Agricole SA the bank dropped 0.1% to €12.16.

Esker SA increased 1.9% to €5.20 after the software company said that it has signed a contract of $350,000 for its logistics solution software in Australia.

GDF Suez SA the gas distributor added 0.7% to €29.57.

Henkel AG & Co. KGaA decreased 1.2% to 36.49 and the company said it has settled a claim related to advertising contract with Brawn GP Formula One Team. Earlier the company had asserted that an employee had signed multi-million dollar contract without the company approval. The settlement involves no cash payment now or in the future.

Hornbach Holding AG decreased 1.8% to €69.60 an investment company said nine months sales rose 4.5% to €2.31 billion from €2.21 billion a year ago. Net profit in the nine months fell 18% to €70.3 million or €8.76 per diluted share compared to net profit of €85.4 million or €10.64 per share a year ago.

MediGene AG increased 2.2% to €3.58 and the pharmaceuticals company said company’s nominates Dr. Thomas Werner to its supervisory board.

NicOx SA gained 6.0% to €5.88 after the drugmaker said that a marketing authorization Application for naproxcinod, for the relief of the signs and symptoms of osteoarthritis has been submitted to the European Medicines Agency.

Rexel SA the electrical equipment distributor slipped 0.1% to €9.98.

Salzgitter AG the steel technology industry rose 2.3% to €70.00.

SGL Carbon SE the maker of carbine and graphite products fell 2.0% to €21.00 after the company said it plans to take a non-cash impairment charge between €70 million and €80 million on the weakness in carbon fibers & composite unit.

Sky Deutschland AG soared 8.2% to 2.25 after surging 11% in the previous session after News Corp plans to raise its stake in the company to 45%. Nord LB today revised rating on the company to “hold” from “sell” as published on NewRatings.com.

Societe Generale SA the French banking group rose 1.2% to €48.17.

ThyssenKrupp AG the steelmaker rose 0.9% to €26.15.

Thomson SA declined 5.5% to €1.02 after 98.8% members of creditors committee approved its restructuring plan. The French electronics maker and the owner of Technicolor is operating under Chapter 15 bankruptcy in the U.S. The restructuring plan involves revised credit terms and share sale in rights offering that may dilute the current holders between 51% and 15%.

Total SA climbed 1.6% to €44.57 after the oil producer is looking to expand its cooperation with China''s oil producer on several projects, including a multibillion-dollar natural-gas project in northern China and prospective overseas deals in Iran and Venezuela, its chief executive said in an interview.

Vinci SA rose 0.1% to €39.69 and the joint venture between the company and Taylor Woodrow has been awarded a contract of £250 million by Transport for London to upgrade Tottenham Court Road Tube station.

DAX Index Movers

K+S AG led the decliners in the DAX index of 1.73%, followed by losses in Commerzbank AG of 1.25%, in Hemkel AG of 1.06%, in Fresenius SE of 1.03%, and in Linde AG of 0.82%.

Infineon Technologies AG led gainers in the DAX index with a rise of 4.04% followed by increase in Allianz SE of 2.15%, in Salzgitter AG of 1.74%, in RWE AG of 1.41%, and in Muencher Rue AG of 1.39%.

CAC-40 Index Movers

Unibail-Rodamco SA led the decliners in the CAC-40 index of 1.70%, followed by losses in PPR SA of 1.49%, in Dexia SA of 1.00%, in Credit Agricole SA of 0.70%, and in BNP Paribas SA of 0.57%.

STMicroelectronics N.V. gainers in the CAC-40 index with a rise of 2.96% followed by gainers in Renault SA of 2.82%, in Vallourec SA of 2.50%, in Schneider Electric SA. of 2.10%, and in PSA Peugeot Citroen S.A. of 1.81%.