Shares Trading Markets

Share Trading - 31 Jan 2011

UK Share Trading News

• UK Stocks – Private equity firm Blackstone is considering buying further stakes in UK firms after raising USD 15bn from investors. Sectors of interest include healthcare, media, leisure, engineering and technology. (Telegraph)
  
  
• UK Banks – Four of the UK's biggest banks are set to unveil profits of more than GBP 24bn in what will be taken as the clearest sign to date that the banking sector is back on track after the global financial crisis. (Telegraph)
  
  
• BP – Sources close to the Environmental Protection Agency (EPA) have said the US Government is likely to agree to reduce its estimate of the size of the Gulf of Mexico oil spill, which could cut the fines for the Co. (Observer)
  
  Also, the Co. has offered a “fast-tracked” arbitration in Sweden to resolve a conflict that has arisen over the share swap and an Arctic exploration deal that it struck two weeks ago with Rosneft, Russia’s state-controlled oil giant. (Sunday Times)
  
  
• GlaxoSmithKline – Co. is expected to raise its final dividend despite Q4 profits being wiped out by legal charges. However, the co. is likely to stop short of relaunching its share buyback. (Sunday Times)
  
  
• BHP Billiton / Rio Tinto – Large institutional investors have individually written to both Co’s demanding they use their strong balance sheets to perform multi-billion Pound share buyback schemes rather than large acquisitions. In fact they have threatened to vote down the re-election of key board members if they do not agree to the commitments. (Telegraph)
  
  
• Lloyds – Friends Provident which is owned by Clive Cowdery’s Resolution may make a bid for the Co’s Scottish Widows unit one Andy Briggs who heads up the Co’s general insurance business leaves to join Friends Provident as their CEO. (Scotland on Sunday)
  
  
• RBS – Britain could start selling its GBP 46bn stake in co. early next year. (FT More)
  
  
• Cairn Energy – India’s ONGC will not make a counter bid to Vendanta’s bid for the Co’s Indian assets if the royalty which ONGC pay on crude oil produced at Cairn’s Rajasthan oil fields is added to the project cost. (Press of India)
  
  
• Resolution – Co’s Friends Provident unit may make a bid for the Scottish Widows unit of Lloyds Banking Group once Lloyds executive Andy Briggs leaves to join Friends Provident as CEO. (Scotland on Sunday)
  
  

US Share Trading News

• Equities finished the session sharply lower and largely disregarded the release of the advanced Q4 GDP report and instead focused on the escalation of the political unrest in Egypt. So much so that WTI crude oil futures gained over USD 3.00 as traders speculated whether the political tensions will see a closure of the Suez Canal.
  
  Finally, at the closing bell DJIA closed down 1.39% at 11824.39, S&P 500 closed down 1.78% at 1276.38 and Nasdaq 100 closed down 2.55% at 2270.72.
  
  
• Google – Co. is in talks with the US Justice Department to attempt to prevent an antitrust challenge against the Co’s attempt to acquire ITA Software (WSJ)
  
  
• Boston Scientific - Co. says that it doesn't expect the civil lawsuit filed by the US government over implantable heart devices to cost the Co. a significant amount of money. (AP/The Boston Globe)
  
  
• Sara Lee – Co’s new CEO Smits said the Co. has received offers for the whole company, but did not give names of any bidders. (Het Financieele Dagblad) Meanwhile the Herz family through Maxinvest, may be interested in acquiring the Co’s coffee business. (Lebensmittel Zeitung)
  
  
• Massey Energy – Alpha Natural Resources has reached a deal to acquire rival Massey Energy for USD 7.1bn in cash and stock. (WSJ)
  
  

European Share Trading News

• EADS – Co’s Airbus unit will on Monday declare a GBP 28bn victory over its rival Boeing in the five-year legal battle over illegal trade subsidies. (The Mail on Sunday)
  
  
• Alstom – Co. has been mentioned alongside ABB, CVC Partners and AXA Private Equity as being interested in acquiring Irish electrical engineering group Mercury Engineering. (Irish Independent on Sunday)
  
  
• Carrefour – Co.’s shareholders are mulling a break-up of the group into three listed units in order to enhance the value of their investment. (Le Figaro)
  
  
• German Banks – Stricken German lender WestLB is headed for a breakup as time runs out to find a solution for the bank as a whole, two people familiar with the matter said. (RTRS)
  
  
• Bayer – Co. has entered into a joint venture with Zydus Cadila to enhance the Co’s presence in the Indian pharmaceutical market. (Sources)
  
  
• SAP – Co’s CFO says the Co. remains interested in making acquisitions, and expects the positive business trend to continue in the coming quarters. (Euro am Sonntag)
  
  
• Deutsche Telekom – Co.’s T-Mobile USA unit wants to overtake Sprint Nextel as the country’s third largest mobile phone operator by 2015. (Financial Times Deutschland)
  
  
• Merck – Co. is considering the sale of its consumer health unit and has started overhauling its approach to clinical drug development. (FT More )
  
  
• Beiersdorf – The Herz family may sell their 50.46% stake in the Co. in order to finance a purchase of Sara Lee’s coffee business. Proctor & Gamble have been named as a potential buyer, however the Herz family through Maxinvest has denied it intends to sell its stake. (Lebensmittel Zeitung)