Euroshares up mid-morning; Alcatel-Lucent gains on well-received outlook

Euroshares up mid-morning; Alcatel-Lucent gains on well-received outlook

	Published : Fri, 09 Feb 2007 11:45 By : Agencies Print this Story

LONDON (AFX) - Europe's largest bourses were higher mid-morning as a well-received outlook statement from Alcatel-Lucent offset a weak showing on Wall Street overnight, dealers said.

At 10.20, the STOXX 50 was up 20.83 points at 3825.35 and the STOXX 600 was 2.01 points higher at 380.31.

After a disappointing pre-announcement in late January, Alcatel-Lucent added 2.36 pct after the newly merged group reported dismal fourth-quarter numbers -- as it had warned it would -- but issued an outlook statement that was better than some had been expecting.

'With the market concentrating on the outlook and going beyond the disappointing 2006 figures, Alcatel provided a rather optimistic outlook for 2007,' said a dealer at a major US broker.

Larger than expected synergies and the upbeat revenue growth forecast are driving the stock higher, he said.

ABN Amro added 1.68 pct after a report said some of its institutional investors have contacted Unicredito Italiano -- up 0.69 pct -- to ask the Italian banking group to consider a bid for the Dutch group.

The investors are not satisfied with ABN Amro's strategy, which is considered 'as too dispersed' with 4,500 branches in 53 countries, Italian daily Finanza & Mercati said.

Metrovacesa SA added 0.58 pct as Cinco Dias said the Sanahuja family -- which currently holds a 39.6 pct stake -- is mulling launching a full bid for the company.

But gains were limited as the Sanahuja family's investment vehicle Cresa Patrimonial said it has made 'no decision, nor has any intention of a launching a further bid'.

DaimlerChrysler climbed 2.25 pct as Citigroup upgraded its stance on the automaker to 'buy' from 'hold' with a new 60 eur price target, up from 45 eur.

YIT stormed 7.13 pct higher after its fourth-quarter results beat expectations, fuelled by strong growth in the Nordic and Russian construction market.

Merrill Lynch repeated its 'buy' stance.

Sanofi-Aventis slipped 1.47 pct -- one of the few fallers on the STOXX 50 -- after the company said it lost its legal fight in the US to protect blockbuster Lovenox against US generic competition.

This offset news that Deutsche Bank had lifted its rating to 'buy' from 'hold' on hopes that acquisitions will lift earnings at the healthcare group.

Yara slipped 0.61 pct as it reported lower-than-expected fourth-quarter sales.

Shares in Securitas fell 0.97 pct after the group reported weaker-than-expected fourth-quarter results, dealers said.

Rival Group 4 Securicor, though, added 0.26 pct, saying today's news confirms its belief that the discount on the London listed group's shares is unjustified.

deborah.hyde@afxnews.com

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