STOCKS NEWS EUROPE-Santander rights issue hits bank, peers

STOCKS NEWS Reuters Results diary

Stocks on the move Real-time Equity News


08:57GMT 10Nov2008
Santander rights issue hits bank, peers

Banco Santander's announcement of a deep-discounted rights issue to shore up its capital ratios sends its shares, and those of peers BBVA and Bankinter, lower on fears that other Spanish banks may make similar measures.

Banco Santander is down 3 percent and BBVA falls 0.4 percent and Bankinter is down 0.2 percent.

'The focus will now be on BBVA, and the other Spanish banks, which may now look to hit the benchmark now set by Santander in terms of capital levels,' a Madrid-based analyst says.

Santander says its rights issue is entirely dedicated to reinforcing its core capital level to 7 percent, from the 6.3 percent the bank announced at the end of September.

The bank is offering investors 1.6 million new shares or one for every four they already hold, with the new shares priced at 4.5 euros per share, compared to Santander's closing of 8.34 euros per share on Friday.

For more double click on

Reuters Messaging rm:[e-mail]))


08:50GMT 10July2008
Inmarsat rises on confident outlook

Shares in Inmarsat tick up 0.2 percent to 395.5 pence, after hitting a high of 424.5 pence in early trade, after the British satellite communications company posts a better than expected 16.4 percent rise in third-quarter revenue and says it is on track to deliver revenue growth for the full-year 'well ahead' of its target range of 6-8 percent.

Analysts at Cazenove, who have an 'outperform' rating on the stock, say that while quarterly volatility remains a feature of the company, the numbers represent yet another strong quarter and should further increase confidence.

'Inmarsat should prove resilient through periods of economic weakness, not least given close to 40 percent of revenues from government related areas,' they said in a note.

For more double click on, company statement

Reuters Messaging rm://[e-mail]


08:49GMT 10Nov2008
FTSE Small Cap Index up 0.7 pct early

The FTSE Small Cap Index rises 0.6 percent, following the trend set by the wider UK markets, as the FTSE 100 Index jumps 2.7 percent.

Fortune Oil surges 7.8 percent on the back of strong growth in its third-quarter natural gas sales. The company says slowing China GDP growth is not expected to affect revenues.

Reuters Messaging rm://[e-mail]


08:40GMT 10Nov2008
Dairy Crest shares plunge on profit warning

Dairy Crest shares drop 21 percent to a 7-1/2 year low of 260 pence after the chilled foods group says full-year profits will be about 10 percent below the previous year due to the consumer downturn, weaker dairy ingredients markets and delays in selling surplus property.

'Given the current low visibility in the UK consumer environment and some of the Dairy Crest specific-issues (namely the Dairies business), we can no longer justify a buy rating,' Citi analysts say in a research note, cutting their rating to 'hold' and their target price to 330 pence from 490 pence.

For more information please click on and

Reuters Messaging: rm://[e-mail]


08:41GMT 10Nov2008
DCC rises on strong H1, outlook

Shares in Irish business services group DCC rise 7 percent in London after it reports a 13-percent rise in first-half earnings and an encouraging start to the second half, reaffirming full-year guidance and focus on bolt-on acquisitions.

'Given the defensive nature of the group's operations, notably in energy, as well as its financial capacity to execute further deals, we re-iterate our 'Buy' rating,' says NCB analyst Paraic Quinn.

Reuters messaging rm://[e-mail]


08:39GMT 10Nov2008
Majestic Wine lower as interim proftis fall

Shares in Majestic Wine Plc fall 8.8 percent to 135 pence after the wine retailer reports a 25.5 percent fall in half-time pretax profit to 5.6 million pounds and says the key Christmas trading period will be challenging.

Evolution Securities says trading was worse than expected and that estimates for the full year are likely to come back by about 20 percent. It now looks for pretax profits of 13.5 million pounds for 2008/09, compared to 17.2 million previously.

However, the broker is maintaining its 'buy' recommendation for the shares based on fundamental valuations, although it expects the stock to fall in the short-term.

For more click on; company statement

Reuters Messaging rm://[e-mail]



COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.