|
 |
|
|
|
|
|
08:49 2006/11/21
Euro bourses get boost from hostile LSE takeover bid
LONDON: European stock markets closed higher yesterday with trading lit up by a hostile takeover bid for the London Stock Exchange by US peer Nasdaq.
The London FTSE 100 index gained 0.20% to close at 6,204.5 points, in Paris the CAC 40 won 0.28% to 5,454.74 points while in Frankfurt the Dax added 0.62% to end the day at 6,452.33.
The DJ Euro Stoxx 50 index of leading eurozone shares rose by 0.39% to 4,095.75 points.
US stocks rebounded from a lower opening in morning trading amid two large mergers in the property and mining sectors, including a record $36bn bid by the Blackstone Group for a US real estate firm.
The Dow Jones Industrial Average was up 0.05% at 12,348.26. The Dow hit a record close of 12,342.56 on Friday.
The tech-laden Nasdaq composite was up 0.32% at 2,453.76 while the broad-market Standard & Poor??™s 500 index was 0.18% higher at 1,403.75.
Stocks gained as investors digested Blackstone??™s bid for Equity Office Properties Trust and a separate $25.9bn friendly merger announced by Freeport-McMoRan Copper and Gold and Phelps Dodge.
Shares in the London Stock Exchange closed 5.99% higher at 1,291 pence after the Nasdaq stock market returned with an improved takeover bid worth ??2.9bn (4.3bn euros, $5.5bn).
The offer, 21% higher than a first approach in March this year, was again rejected by the management of the LSE, which said the bid undervalued the exchange.
The technology-weighted Nasdaq, which was already the biggest shareholder in Europe??™s biggest stock market, added that it now owned 28.75% of LSE stock.
Elsewhere in London, shares in British commercial television network ITV fell 1.08% to 114.50 pence after satellite broadcaster BSkyB bought a 17.9% stake in the group late on Friday.
BSkyB??™s purchase was perceived by industry analysts and the British media as a move aimed at preventing a potential takeover of ITV by US cable giant NTL.
Shares in BSkyB fell 0.74% to 533 pence.
On other markets in Europe, in Amsterdam the AEX index fell by 0.19% to 491.70 points, the Swiss SMI was up by 0.16% to 8,760.04, in Milan the SP/Mib gained 0.18% to 40,721 points, in Madrid the Ibex-35 added 0.61% to 14,256.
The euro hit new highs against the yen yesterday after G20 finance chiefs showed little concern about the weakness of Asian currencies at a weekend meeting, but the European currency was stable against the dollar, dealers said.
The euro was at $1.2809 in late-day trade against $1.2825 on Friday in New York.
The dollar was meanwhile trading at ??118.16, from ??117.71 late on Friday.
While the Bank of Japan??™s governor Toshihiko Fukui appeared to diminish the inflation threat facing his country, the European Central Bank??™s president Jean-Claude Trichet warned there was ???no room for complacency??? about inflation, despite recent falls in the price of crude oil.
Trichet said the global economy appeared set to maintain the ???very, very dynamic growth??? of recent years, although the rate of expansion in 2007 would be slightly slower than this year.
Analysts said Trichet??™s comments have further reinforced suggestions that the ECB will keep raising its key refi rate from the current 3.25% well into the new year, while the Bank of Japan would hold fire for more time than anticipated.
The pound was being traded at $1.8969 from $1.8953 on Friday. On the London Bullion Market, the price of gold advanced to $625.50 per ounce, from $620.50 late on Friday. ??“ AFP
|
|
 Printer-Friendly Version
 Send This Page
 Add to Favorites
 Comments
|
|
|
|
|
|
|
|
|
|
 |
|
|
|
|
|
News RSS Feeds
