February 12, 2009 / 12:47 PM / 9 years ago

STOCKS NEWS EUROPE-DSG rises, broker eases funding fears

STOCKS NEWS Reuters Results diary

Stocks on the move [HOT-RTRS] Real-time Equity News [E] [WEU/EQUITY]

12:43GMT 12Feb2009-DSG rises, broker eases funding fears


Shares in DSG International DSGI.L rise as much as 16.1 percent to 27 pence after analysts at Credit Suisse say Chief Executive John Browett played down funding issues in a meeting with the company.

A report in the Sunday Telegraph newspaper had said Europe’s second-biggest electrical goods retailer was drawing up contingency plans for a rights issue to raise “hundreds of millions of pounds”.

The Credit Suisse analysts repeated their “outperform” recommendation.

“Overall we came away with our positive view reinforced. We felt John Browett was relaxed, playing down any funding issues and whilst admitting there was still lots to be done, was generally pleased with improvements seen to date within the UK businesses,” they say in a research note.

Reuters messaging rm://james.davey.reuters.com@reuters.net

12:20GMT 12Feb2009-FTSE Small Caps down 0.2 percent midday


The FTSE Small Cap Index .FTSC slides 0.2 percent in mid session trade, taking its cue from the wider UK market, where the FTSE 100 .FTSE is 1 percent lower and the FTSE Mid Caps .FTMC are down 0.6 percent.

Castings (CGS.L) falls 9 percent as the British iron castings supplier says customer demand has been at a very low level, especially over the Christmas and January period, and it is currently operating at about 40 percent of its previous production levels and expects no improvement at the present time.

Eidos EID.L soars 125 percent as Japanese video games maker Square Enix (9684.T) agrees to buy the British firm behind titles such as ‘Tomb Raider’ and ‘Championship Manager’ for 84.3 million pounds ($120.8 million) to extend its reach in Europe.

Reuters Messaging rm://david.brett.reuters.com@reuters.net ($1=.6980 Pound)

    12:14GMT 12Feb2009-Fenosa gains after Gas Natural bid approval


    Shares in Spanish power company Union Fenosa UNF.MC gain 1 percent to 17.73 euros, approaching bidder Gas Natural’s 18.05 euro per share takeover offer, as Spanish competition approval of the operation removed uncertainty on the deal.

    “Investors see the competition approval as removing doubts about the timing of the operation so they are buying into the stock ahead of the expected full bid for the company,” a Madrid-based trader says.

    Gas Natural guaranteed Spanish constructor ACS (ACS.MC) 18.33 euros per share for its 45 percent stake in Fenosa, but said it would discount Fenosa’s 0.28 euro per share dividend from any subsequent offer for Fenosa shares.

    Spanish competition authority CNC said it approved Gas Natural’s 16.7 billion euro ($21.58 billion) bid for Fenosa on Wednesday.

    For more double click on [LC440118] ($1=.7739 Euro)

    Reuters Messaging rm://jonathan.gleave.reuters.com@reuters.net

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