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    November 22, 2006

    French banks mixed

    Filed under: Deutsche Bank, BNP Paribas, Societe Generale, Agricole, Air France-KLM, Iberdrola, Suez, Gaz de France, Euronext, Lufthansa, Vinci

    In Europe on Wednesday the FTSE Eurofirst 300 dropped 0.2 percent to 1,465.95.

    Utilities fell to profit-taking and a court ruling that delayed the Suez/Gaz de France merger. Suez was 1.1 percent lower to €36.09, while Gaz de France dropped 2.5 percent to €32.36. Meanwhile Iberdrola, which is expected to bid for Scottish Power soon, fell 1.6 percent to €33.27.

    The banking sector was mixed. Credit Agricole dropped 4 percent to €32.90 and earned it a broker downgrade after its third-quarter earnings report disappointed. Elsewhere in the sector, BNP Paribas added 0.2 percent to €84.20 but Societe Generale dropped 0.2 percent to €130.

    Gainers on the session included the airlines sector. Lufthansa was 1.9 percent higher to €19.31, while Air France-KLM gained 3.2 percent to €32.25. The gains came after Australia’s Qantas Airways was the recipient of a takeover offer.

    Stock exchanges were also higher. Euronext added 5.3 percent to €95.85 after it agreed with NYSE Group on the structure of the board of directors once the two complete their merger. Meanwhile Deutsche Borse was 6.5 percent higher to €138.13 on rumors that it will take a stake in Bulgaria’s stock exchange.

    In the construction sector, French group Vinci gained 2.7 percent to €95.55 on speculation that it might be the target of a bid from private equity.





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