(update with full report)
PARIS (AFX) - Shares closed lower on a day marked by profit-taking in the wake of yesterday's gains, led down by EADS and Alcatel, dealers said.
The CAC-40 index finished 49.45 points or 0.94 pct lower at 5,205.81, on volume of 4.92 bln eur.
Among CAC-40 stocks, 32 closed lower and 8 closed higher. On the Matif, April CAC-40 futures were trading 43.5 points down at 5,219.0.
On the broader indices, the SBF-80 index closed down 16.15 points at 6,103.66 and the SBF-120 fell 32.74 points to 3,786.27.
The euro fell against the dollar at 1.2256 usd compared with 1.2131 usd late yesterday.
Alcatel made sharp losses of 0.31 eur or 2.32 pct to 13.07, reversing morning gains that added to Monday's sharp rise following the weekend announcement of its planned merger with Lucent Technologies.
EADS lost 0.77 eur or 2.20 pct to 34.25, as investors took profits after the strong rise seen over recent weeks. French daily La Tribune reported that Alcatel is refusing to pursue any satellite deal with Thales that would involve EADS, which has long wanted to take a stake in Thales.
Thales added 0.04 eur or 0.11 pct, up to 37.30. The board of directors of Thales, meeting this afternoon, is expected to approve the satellite deal with Alcatel, which has received approval from the French government, the largest shareholder in Thales with a 31.3 pct stake.
Lagardere was down 0.20 eur or 0.31 pct to 64.25. Its shares were upgraded to 'outperform' from 'neutral' by Credit Suisse, with a raised target price of 74 eur. The broker added that the group's media assets would gain visibility if it disposed of its 15 pct stake in EADS.
Electricite de France dropped 0.88 eur or 1.81 pct to close at 47.77, ending a run of four consecutive days of rises during which the stock gained almost 6 pct.
Total weighed on the market as it lost 3.90 eur or 1.77 pct at 216.10 after the Venezuelan government said it had taken control of two oilfields operated by Total and ENI after they rejected new operating accords.
Arcelor fell 0.29 eur or 0.88 pct to 32.50, after its board approved a series of measures in its attempt to ward off the hostile bid from Mittal Steel.
The group is proposing a dividend of 1.85 eur, much higher than the planned 85 pct rise on 2005 earnings to 1.20 eur per share, and also pledged to distribute 5 bln eur to shareholders from its cashflow.
Arcelor also transferred its ownership of Canadian steelmaker Dofasco to an independent Dutch foundation it created, Strategic Steel Stichting, to prevent Dofasco from being sold in the event that Mittal's bid succeeds.
Lafarge slid 0.25 eur or 0.26 pct to 96.10. It raised its takeover offer for the minority stakes in its North American unit to 82 usd per share from 75 usd, and has extended the offer to April 28, after a special committee of Lafarge North America's board said the initial offer valued at 3 bln eur was inadequate.
Accor fell 0.65 eur or 1.36 pct to 47.17. It said it will increase the number of hotels it owns in China from 34 to 'over 40' by the end of this year.
France Telecom was down 0.25 eur or 1.35 pct to 18.33. It confirmed it may seek to buy the 51 pct stake in state-owned Cameroon Telecommunications (Camtel) being sold by the government, but a company spokesman said it has not yet made a decision.
Schneider Electric made the largest gains among the few risers, finishing up 1.25 eur or 1.39 pct to 91.35.
Dexia outperformed the other financial stocks to close up 0.03 eur or 0.14 pct at 21.50, on renewed speculation that it could be one of the potential bidders for rival state-financing bank Depfa.
Among second-liners, Euronext gained 0.75 eur or 1.12 pct to 67.50, as investors continue to anticipate a tie-up with Deutsche Boerse, while Eiffage extended yesterday's gains by 3.50 eur or 2.46 pct to 145.50 in the wake of reports that Spain's Sacyr Vallehermoso has built up its stake in Eiffage to nearly 15 pct and is seeking four seats on the company's board. paris@afxnews.com rg/cml/rg/jfr COPYRIGHT Copyright AFX News Limited 2005. 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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