(Updating with stock details)
MILAN (Thomson Financial) - Share prices closed higher led by mutual bank BPVN which retraced some of last week's heavy losses after its CEO said the worsening financial situation at Banca Italease, in which BPVN owns 30 pct, will not impact its profits.
The Mibtel index ended up 0.49 pct at 32,744 while the S&P/Mib blue chip index rose 0.39 pct to 41,874.
Volumes fell to 6.2 bln eur, from 11.5 bln Friday.
BPVN rose 4.43 pct to 21.67 eur as Banca Italease retraced some of Friday's 25 pct plunge to close up 10.74 pct at 21.97. In a conference call today, BPVN's CEO confirmed the group's 2008-2010 financial targets and said developments at Italease, which in the last month has lost about half its value, will not undermine the bank's profits. Italease, which has appointed a new CEO to tackle the problems deriving from its exposure to derivative products, has said it may launch a capital hike.
BPI, which is slated to merge with BPVN, jumped 3.78 pct to 11.41 eur.
Atlantia was up 1.85 pct at 24.82 eur after Schema28, the Benetton-led holding company that controls Atlantia, said it has started procedures to renew the shareholders pact and assess the state of play as regards a possible merger with Abertis. Analysts said while such a merger is still possible, it is likely some way down the road. Atlantia's chairman today said the group continues to work with Abertis which is a shareholder of Atlantia.
Fiat rose 1.5 pct to 20.32 eur after last week's heavy losses, in step with Europe's auto sector. The stock was also supported by Goldman Sachs confirming it as a conviction buy. The Fiat chairman today denied there are talks with Jaguar or Land Rover. The group's CEO Sergio Marchionne repeated he is willing to stay on beyond 2010, indicating Fiat will be more international.
AEM rose 1.50 pct to 2.90 eur after the group's chairman said AEM is not in talks to buy out the smaller utility shareholders in Edison. Analysts say the company will be able to generate more synergies in its planned merger with ASM Brescia if it strengthens its grip on Edison.
Enel was up 0.50 pct at 8.27 eur despite its credit rating being downgraded by Fitch to 'A' from 'A+'. The company is reportedly interested in buying Denmark's Spanish-based renewable energy company Dong through its Eufer renewables joint venture with Union Fenosa.
Telecom Italia led the losers, down 1.36 pct at 2.03 eur in step with the European telecoms sector.
Bulgari fell 0.91 pct to 11.33 eur after its CEO denied any of its major shareholders intend to sell their stakes.
On its first day of trading Screen Service got off to a flying start but retraced most of its gains in later trade to end up 1.87 pct at 1.63 eur. stephen.jewkes@thomson.com sj/dca/sj/gp COPYRIGHT Copyright 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.
© 2007 AFX News
