Paris shares close lower, CAC 40 ends year nearly unchanged (UPDATE)

Paris shares close lower, CAC 40 ends year nearly unchanged (UPDATE)

	Published : Mon, 31 Dec 2007 14:20 By : Agencies Print this Story

(Updates with full share report)

PARIS (Thomson Financial) - Share prices finished slightly lower in thin holiday trade as corporate news was at a minimum for the market's half-day of trading ahead of a market closure on Tuesday, which is New Year's day.

The CAC-40 index finished 13.17 points or 0.23 pct lower at 5,614.08. In 2007, the CAC rose 1.3 pct.

Among CAC-40 stocks, 14 closed higher and 26 closed lower.

On the broader indices, the SBF-80 index closed up 32.89 points, or 0.52 pct, at 6,346.39 and the SBF-120 ended down 5.42 points, or 0.13 pct, at 4,060.34.

The euro was quoted at 1.4719 usd compared to 1.4743 usd earlier Monday.

Air France-KLM closed up 0.84 pct or 0.20 eur at 24.05.

The airline's chairman and chief executive Jean-Cyril Spinetta said Air France-KLM is 'committed to rapidly reaching a solid agreement that paves the way to the profitable growth of Alitalia', after getting the green light for exclusive merger talks from Italy's economy minister on Friday.

According to a report in Italian daily Il sole 24 Ore, Air France-KLM's plans for Alitalia include placing 51 pct of its shares in a separate Italian foundation or trust once it acquires the airline, in a move aimed at 'safeguarding the Italian nationality of the company'.

Gaz de France closed down 1.57 pct or 0.64 eur at 40.00.

The French utility said it expects a negative impact of around 90 mln eur on its results for the first quarter of 2008 following the government's decision to allow a 4 pct increase in residential gas prices from Jan 1, below the 6.1 pct rise requested by the gas company.

In a statement Sunday, GDF said the price rise was not sufficient to enable it to recover its costs.

Alcatel-Lucent closed down 0.6 pct or 0.03 eur at 4.95. The French-US telecommunications equipment maker was the worst performing stock on the CAC 40 index in 2007, losing over half its market value following a series of missed earnings targets and disappointing forecasts.

Off the CAC, Internet service provider Iliad closed down 0.38 pct or 0.28 eur at 73.60.

Iliad said that Thomas Reynaud will take over as chief financial officer on Jan 1, replacing Olivier Rosenfeld, who has been with the company since January 2001, and who will remain a director and shareholder of Iliad with about 1 pct of Iliad's capital.

Analysts at CM-CIC Securities said the move casts doubt on the imminence of a tie-up with another company, as they do not believe that Iliad would prepare the succession of its CFO if a deal was in the pipeline.

tfn.paris@thomson.com

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