Archive for September, 2006

** BID MANIA **

Thursday, September 28th, 2006

- STMicroelectronics NV, Europe’s largest maker of computer chips, may be targeted for a takeover, according to traders betting on the creditworthiness of companies in the credit-default swap market. The perceived risk of owning STMicroelectronics’ $1.6
billion of bonds has risen 15 percent in the past week to its h ighest in five months, according to data compiled by Bloomberg.

- Siemens AG management board doesn’t rule out the possibility of a hostile takeover in the light of its relatively low share price, Capital magazine reports Thursday in advance of publication. The magazine cites an internal speech by Juergen Radomski, a member of the corporate executive committee and labor director of Siemens. Radomski says the that the management board needs to improve profitability, achieve the targeted profit margins in individual business divisions by spring 2007 and increase dividends by EUR0.10 per share, to prevent any hostile bids from hedge funds or private equity firms.

Who’s next?

** EU COURT SAYS DUTCH GOLDEN SHARES IN KPN, TNT ILLEGAL **

Thursday, September 28th, 2006

BRUSSELS (Dow Jones)–The European Union’s highest court Thursday ruled the Dutch government must dismantle special voting rights, or “golden shares,” in privatized companies, a decision that bolsters regulators’ efforts to eradicate barriers to cross-border buyouts.

*SOCIETE GENERALE TO SELL EU2.4 BLN IN STOCK IN RIGHTS OFFER

Thursday, September 28th, 2006

Sept. 28 (Bloomberg) — Societe Generale SA, France’s third- largest bank, will sell 2.4 billion euros ($3.1 billion) of stock to existing investors to fund purchases in countries such as Russia. The rights offer will help Paris-based Societe Generale pay
for purchases this year, the bank said in an e-mailed statement today. The lender, led by Chairman Daniel Bouton, will boost its stake in Russia’s OAO Rosbank to 20 percent and may take control of the Russian bank by 2008, Societe Generale said.

Societe Generale has spent more than 2 billion euros on acquisitions this year outside of France. It acquired a 10 percent stake in Rosbank and bought Splitska Banka to expand in Croatia, as well as UniCredit SpA’s custodian business. It is also leading a group of bidders for 85 percent of Guangdong Development Bank, China’s 11th-biggest lender.

** MORNING WRAP **

Thursday, September 28th, 2006

** US MARKETS **
Dow 0,17%; Nasdaq 0,09%; S&P 0,02%; Soxx -0,7%; Russel2k 0,4%; DJAIG 0,48%; 10yr
Bond -0,04%; 10yr Yield 4,6%; Crude future 63,06; Gold 601,97

| Energy 1,53%| Utilities 1,22%| ConsStaples 0,49%| Healthcare 0,16%|
Industrials 0,16%| ConsDisc -0,19%| Materials -0,31%| Financials -0,35%|
Technology -0,38%| Telecom -2,32%

** US: IN PLAY TODAY **

- On the earnings front, only a few noteworthy companies are scheduled to report
quarterly results today. Family Dollar (FDO) and Accenture (ACN) will report
before the bell, followed by Research In Motion (RIMM) after the market close.
Meanwhile, at 14:30 CET, investors will get a final read on Q2 GDP, Q2 Chain
Deflator, and Initial Claims.

** ASIAN MARKETS **
Nikkei 0,48%; Kospi 0,74%; HSI 0,17%; Taiwan -0,88%; China 0,69%; India 0,1%;
Thailand -0,21%; Australia 0,42%

** ASIAN HEADLINES **
- Asian Stocks Rise on U.S. Home Sales; Toyota, Samsung Electronics Advance
- Seagate to Hire as Many as 3,000 Workers in Singapore, Invest $819 Million
- Sri Lanka Unexpectedly Raises Benchmark Interest Rate to Stem Inflation
- Standard Chartered Returns to Private Banking in Asia, Plans to Hire 300
- Khazanah Sells $750 Million of Islamic Bonds Exchangeable Into Telekom
- Japan’s Tankan Business Survey Will Probably Show Confidence Held Steady
- Toyota, Honda, Nissan Threaten European Dominance in Diesel-Powered Autos
- Ayudhya JF’s Nasu Buys Thai Stocks to Bolster Fund After the Military Coup

** EUROPE: IN PLAY TODAY **

- Acciona SA and Endesa: The Spanish builder said it doesn’t plan to accept E.ON
AG’s improved bid for Endesa, Spain’s biggest power company. Shares of Acciona,
which acquired 10 percent of Endesa two days ago, gained 2.65 euros, or
2.3 percent, to 120 euros.

- Areva SA: The world’s biggest maker of nuclear reactors said first-half profit
fell to 245 million euros ($312 million) from 301 million euros a year earlier
because of construction delays and higher-than-expected costs at an atomic
plant it’s building in Finland. For the full year, Areva expects operating
income “close to” last year’s level, the company said.

- DSM NV: The world’s largest maker of vitamins said it plans to buy back shares
with a total value of 750 million euros, the company said after the market
closed. The buyback program will be split over 2006 and 2007, and the company
reiterated its outlook for the remainder of 2006.

- Sonaecom SGPS SA, The mobile-phone company owner said its 10.7 billion-euro
($13.6 billion) bid for Portugal Telecom SGPS SA, the country’s largest phone
company, was approved by the country’s antitrust regulator with the condition
that it sell its cable or fixed-line operations.

- Telecom Italia SpA: Italy’s biggest phone company reiterated it will cut its
borrowings to 38 billion euros ($48.2billion) at the end of this year to
reassure investors that it can meet its debt-reduction targets.

** RUMOUR OF PLACING IN SAP **

Wednesday, September 27th, 2006

** LUNCH WRAP **

Wednesday, September 27th, 2006

- Market volumes trade at 145% of the 20-day moving average led by the Retailers.
Mitchells & Butlers (+2%) in talks to sell 100 pubs to Trevor Hemmings for 107m pounds. H&M (+4.6%) profit tops consensus. Bulgari (+2.2%), PPR (+3%) looking to sell FNAC to concentrate on Gucci.

- Repsol (+4.6%) after Spanish energy sector consolidation. Neste Oil (+4.7%) to boost biodiesel investments. E.ON (-1.5%) after raising its bid for Endesa (suspended) to e35.0 in cash. Miners strong after US jump in consumer confidence: Lonmin (+2.3%),
Corus (+2%), and AAL (+3.6%).

- OCE (-13%) profit warning, CNP (-6%) H1 misses forecasts.

- Precious metals continue recovery on physical demand and lofty money growth rates in Europe.

*U.K. 2Q GDP GROWTH REVISED DOWN TO 0.7%, UNCHANGED FROM 1Q

Wednesday, September 27th, 2006

** EUROPEAN MONEY SUPPLY M3 AUGUST +8.3% YoY **

Wednesday, September 27th, 2006

** MORNING WRAP **

Wednesday, September 27th, 2006

** US: IN PLAY TODAY **
- Durable Goods Orders hitting the tapes at 14:30 CET, followed by New Home Sales at 16:00 CET;
- Jabil Circuit up 6.5% after guiding to Q1 revenue of $3.1bn-$3.3bn versus a market forecast of $3.07bn.
- RedHat down 13% after Q2 earnings missed by a penny.

** EUROPE: IN PLAY TODAY **

- Warner Music chief is said to be targeting EMI shareholders in a fresh bid to convince them of the benefits of fresh bid for the company (Times).

- E.ON/Endesa: E.ON increased its offer for Endesa to €35 from €25.405 late on Tuesday.

- Roche said the U.K.’s stockpile of Tamiflu will be completed this week, heightening preparedness in case of a global bird flu pandemic.

- Hennes & Mauritz: Q3 pretax profit SEK 3.77bn vs. cons. SKr 3.6bn; says August sales up 15% yr/yr vs cons 12%; Q3 sales Skr 16.75bn vs. cons. Skr16.8bn; says August l-f-l sales up 5% yr/yr vs. cons. 3%; Q3 gross margin 59.2% vs cons. 58.4%

- Wolters Kluwer: sees organic revenue growth beyond 2007 of 4-5%; aims for double-digit diluted EPS growth beyond 2007; sees return on invested capital exceeding WACC from 2007 onwards; plans to up 2006 dividend by 5% to 58 eurocents

* RUMOUR OF J&J BIDDING FOR SMITH & NEPHEW

Tuesday, September 26th, 2006

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