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    November 10, 2006

    European banks mixed on week

    Filed under: Repsol, Ryanair, Sacyr-Vallehermoso, Natexis Banques Populaire, Danske Bank, Sampo

    European equities markets were higher this week as earnings reports continued to be largely positive and mergers and acquisitions activities continue. The FTSE Eurofirst 300 was up a bit more than 1 percent during the week to 1,464.19. In France, the CAC-40 added 1.4 percent to 5,447.5, while in Germany the Xetra Dax gained 1.9 percent to 6,357.77.

    In the banking sector, Sampo added nearly 11 percent over the week to €18.82 and Danske Bank added 1.5 percent to DKr252 after Sampo agreed to a takeover of its banking unit by Danske, which will pay DKr30.1 billion ($5.2 billion) in cash. Elsewhere in the sector, however, Natexis Banques Populaire dropped 6.1 percent to €209.

    Sacyr Vallehermoso added 6 percent on Friday and 13.3 percent during the week to €46.80 on rumors that it has increased its stake in Spanish oil company Repsol to as high as 15.2 percent. The move, which has yet to be confirmed by Sacyr, would make the Spanish construction group Repsol’s largest shareholder. Repsol, meanwhile, was 4.3 percent higher this week to €27.80.

    Ryanair added 5.1 percent over the week to €9.42 and rose as high as €9.66, a new record, at one point after it upgraded its full-year target for profits.





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