Milan shares close higher, led by Telecom Italia, Pirelli, Alitalia - UPDATE |
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Published
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Mon, 02 Apr 2007 17:52
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(updating with full report)MILAN (AFX) - Share prices closed higher, supported by strong gains in Telecom Italia and Pirelli after AT&T and America Movil's bid for a majority of Olimpia, the Pirelli unit which owns an 18 pct stake in the Italian telecom firm, and with Alitalia up on privatisation news, brokers said.The Mibtel index finished up 0.50 pct at 32,705 and the S&P/Mib added 0.52 pct to 41,990.Volume was an estimated 6.641 bln eur.The market came off its highs on the weaker-than-expected US manufacturing data before recovering towards the end of the session, brokers said.Telecom Italia ended 9.55 pct higher at 2.34 eur and Pirelli was up 9.49 pct to 0.9055.On Sunday, Pirelli said AT&T/America's Movil is bidding for two thirds of Olimpia, offering 2.82 eur per Telecom Italia share.Analysts believe the bid will either go ahead, possibly followed by a bid for minorities, or will force Italian banks to bid more for Olimpia after being reluctant to pay the 2.60-2.80 eur Pirelli was reportedly asking.Either way, Pirelli is expected to sell its stake for around 2.82 eur, boosting its own net asset value. This in turn will boost Telecom Italia's own share price.Alitalia closed up 5.24 pct at 0.9935 eur. During the session, the government said Texas Pacific and MatlinPatterson were linking up to submit a possible bid along with local investment bank Mediobanca.Unicredito said it is linking up with Russia's Aeroflot in its interest in Alitalia. The latest developments leave three possible buyers for the 39 pct plus stake the government is selling in Alitalia.Brokers said the Alitalia developments confirm the serious nature of the bidding process. The share price is likely to benefit if a new owner restructures the airline.Finmeccanica rose 1.51 pct to 22.87 after winning a major order in Turkey. Credit Suisse reiterated its 'outperform', uppingBanks were lower after recent gains on economic news and merger speculation. Ubi Banca lost 1.62 pct to 21.79 on its first day's trading. The bank is the result of the merger of BPU and Banca Lombarda.JP Morgan said in a note on Italian banks that it is 'overweight' on Unicredito, down 0.28 pct to 7.105, and Intesa Sanpaolo, down 0.46 pct to 5.66; and neutral on Mediobanca, up 0.01 pct to 16.68, and UBI.Oils were lower on the mixed crude price. Saipem fell 1.33 pct to 21.56, Tenaris eased 1.23 pct to 17.15, and Eni was off 0.82 pct to 24.16.nigel.tutt@thomson.comnt/gp/nt/jsaCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Milan shares higher midday led by Pirelli, Telecom Italia 