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    March 9, 2007

    Irish banks in gains

    Filed under: Volkswagen, EADS, Bank of Ireland, Allied Irish Banks, Anglo Irish Bank, Man, Scania

    The FTSE Eurofirst 300 added 1.3 percent over the week to close at 1,489.47 on Friday, for a gain of 0.23 percent on the day.

    Car and truck makers did will over the week after Volkswagen (OTC: VLKAY) once again raised its share in Swedish truck maker Scandia (OMX: SCV B), this time to 35.3 percent of voting rights and 20 percent of the company’s total share capital. That means that Volkswagen and MAN (FWB: EDF1), which holds 14.8 percent of the Swedish truck maker, together own a bit over 50 percent of voting rights in Scania. The new acquisition by VW is seen as a step toward consolidation in the European truck making sector. VW, which is also the largest shareholder in MAN, added 10.5 percent on the week to €103.5, while MAN gained 8.7 percent to €87.73. Scania was 2.9 percent higher to SKr534.

    Irish banks also saw substantial gains during the week. Bank of Ireland (LSE: BKIR; NYSE: IRE; ISEQ: BKIR) gained 1.9 percent to €17.38 and Allied Irish Banks ( LSE: ALBK; NYSE: AIB; FWB: AIB; ISEQ: ALBK) added 7.9 percent to €23.40. Both were helped by an announcement from Anglo Irish Bank (LSE: ANGL; FWB: CKL; ISEQ: ANGL) that it expects its earnings in the first half of the year to be nearly 40 percent higher than last year’s results.

    Aerospace company EADS (FWB: EAD; Euronext: EAD) dropped 4.4 percent during the week to €22.60. EADS announced on Friday that losses at its Airbus division sent full-year operating profits for the group down by 86 percent and said it expects losses this year as well.





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