European Markets Up; Yara Bids $4.1 B for Terra

Mayank Mehta
15 Feb, 2010
New York City

European markets edged higher as investors focused on earnings and awaited the details of Greece bailout. Yara International agreed to acquire Terra Industries for $4.1 billion. Man SE reported first loss in twenty years on sales. Pernod Ricard sells selected local nordic brands for

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European markets edged higher as investors focused on earnings and awaited the details of Greece bailout. Yara International agreed to acquire Terra Industries for $4.1 billion. Man SE reported first loss in twenty years on sales. Pernod Ricard sells selected local nordic brands for €82 million.[/R]

European market indexes closed higher after the EU leaders pledged support for Greece and resource companies traded higher despite weak commodities prices.

Positive earnings outlook at Xstrata Plc and Swatch

In London FTSE 100 Index closed higher 25.02 or 0.49% to 5,167.47, in Paris CAC 40 Index increased 10.15 or 0.28% to close at 3,609.22, in Frankfurt DAX index higher 10.71 or 0.19% to close at 5,511.10. In Zurich trading SMI increased 24.56 or 0.38% to close at 6,440.76.

Terra Industries Inc agreed to be acquired by Yara International ASA for $4.1 billion. Yara dropped 7% to Kr 225.7 after it said it will fund the acquisition through a rights offering of $2.5 billion.

Yara agreed to pay $41.10 a share 23.6% premium to the closing price of Terra’s share on Feb 12.

Terra generated $2.9 billion in 2008 and is a leading provider of Nitrogen based products.

Gainers & Losers

Air Liquide SA increased 1.5% to €80.05 the manufacturer of industrial gases firm said full-year revenues fell 8.4% to €12 billion from €13.1 billion a year ago. Net profit for the full-year rose 0.8% to €1.23 billion or €4.70 per diluted share compared to net profit of €1.22 billion or €4.67 per share a year ago.

Danone SA rose 0.2% to €41.83 after the yogurt maker was upgraded to its “selected list” from “outperform” at Cheuvreux.

Groupe Flo SA rose 2.2% to €3.58 after the restaurant chain and catering outlet operator was upgraded to “buy” from “add” at Gilbert Dupont.

Iberia, the largest Spanish airline and a member of One World alliance increased 3.2% to 2.15 after the U.S. regulators approved the joint scheduling of flights and marketing of seats by member airlines.

L''Oreal SA the cosmetics maker rose 1.0% to €77.39.

Man SE added 1.3% to €50.74 after the bus and truckmaker said fourth quarter revenues fell 18% to €3.26 billion from €3.96 billion a year ago. Net loss for the quarter was €472 million compared to net profit of €177 million a year ago.

MVV Energie AG closed unchanged at 30.90 pence after the utility company said first quarter sales rose 1% to €839 million from €830 million a year ago. Net profit for the quarter was €37.6 million or €0.57 per diluted share compared to net loss of €69.3 million or €1.05 per share a year ago.

Pernod Ricard SA fell 0.5% to €55.58 after the liquor maker announces that it has signed an agreement to sell a number of Swedish and Danish assets to Altia for a cash consideration of SEK 835 million, or €82 million.

Renault SA rose 2.9% to €30.43 after the carmaker said it made its first annual loss in 2009 since it was privatized thirteen years ago.

Technip SA added 1.6% to €52.23 after the oilfield-services provider was upgraded to “add” from “reduce” at Oddo Securities.

ThyssenKrupp AG the technology company rose 0.7% to €23.14.

TUI AG increased 6.8% to €6.79 after the tour operator said first quarter revenues fell 15% to €2.95 billion from €3.47 billion a year ago. Net loss for the quarter was €102.8 million or €0.43 per diluted share compared to net loss of €155.1 million or €0.64 per share a year ago.

DAX Index Movers

Infineon Technologies AG led the decliners in the DAX index of 2.98%, followed by losses in METRO AG of 1.60%, in Daimler AG of 1.32%, in BMW AG of 1.12%, and in Beiersdorf AG of 2.30%.

K+S AG led gainers in the DAX index with a rise of 2.06%, followed by increase in Allianz SE of 1.09%, in E.ON AG of 0.77%, in Deutsche Post AG of 0.72%, and in Siemens AG of 0.71%.

CAC-40 Index Movers

Alcatel-Lucent led the decliners in the CAC-40 index of 4.01%, followed by losses in EADS NV of 1.45%, in STMicroelectronics N.V. of 1.29%, in Pernod Ricard SA of 0.95% and in Unibail-Rodamco SA of 0.93%.

Renault SA gainers in the CAC-40 index with a rise of 2.35%, followed by gainers in Technip of 2.04%, in Vallourec SA of 1.61%, in Bouygues SA of 1.57% and in AXA of 1.52%.