STOCKS NEWS EUROPE-SNIA up after creditors approve plan

Tue Dec 29, 2009 1:51pm GMT

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Italian chemicals company SNIA SpA SIAI.MI is up 10 percent after the company announces that 97.8 percent of creditors have approved a debt restructuring plan.

"It makes sense the shares would go up because (the approval) means the company has a future and if they give up some debt swap for equity there will be value creation," a broker says, adding trading volumes are average.

The company said in a statement after markets closed on Monday that it had until Jan. 15 to present its debt restructuring plan to a Milan court for approval. A company source says no details are available yet.

SNIA had net financial debt of 24.6 million euros at the end of November. The shares hit a three-week high before paring gains.

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