The European financial markets have closed lower Monday, investors still fearing a slowdown in the global economy, but the exchanges were, however, supported by numerous mergers and acquisitions in progress.
The Paris CAC 40 index finished the session with losses, yielding 20.43 points (-0.58%) to 3487.01.
Trade volumes were particularly weak during this meeting due to a holiday in Britain.
The pharmaceutical values showed the strongest gains, taking Sanofi-Aventis 0.66% after the rejection of its proposal for redemption by Genzyme.
Intel announced on Monday the takeover of the division of components for mobile equipment of Germany's Infineon Technologies for $ 1.4 billion, pushing back the title of the latter 3.69% at closing.
Other declining value, the title Safran lost 2.3%, the group had denied preparing a bid for Capital of Zodiac, whose title has however jumped 10.45%.
Essilor International on Friday confirmed its 2010 targets in the light of a first half marked by a rebound in sales and a sharp rise in net profit excluding exceptional items.
The world leader in ophthalmic optics said he was always on full year growth of 5 to 7% of its turnover and a stable operating margin over the rate of 18.2% achieved last year, excluding currency effects, acquisitions and strategic change IFRS.
"In the second half of 2010, in a context of renewed activity still fragile, Essilor will pursue the strict implementation of its strategy of growth based on new products, geographical expansion, acquisitions and organic conquer the environment range, "the company said in a statement.
Turnover rose 15.8% to 1,926.8 million euros in the first six months of the year, an increase of 5.9% excluding currency and strategic acquisitions.The Group's contribution margin – operating profit before share-based payments, restructuring costs and impairment of goodwill – came out in turn to 347.5 million (+15.2%), or 18.0% of turnover.
"This is broadly in line with my expectations, the guidance is unchanged, the activity in the U.S. looks a little worse than expected, but overall everything is online, perhaps there will he then some profit taking this morning, "said one industry analyst on condition of anonymity after the value.
The Essilor share opened down slightly from 0.22% to 48.09 euros, giving a market capitalization of about $ 10.3 billion.Since the beginning of the year, the title took 15.5%, after rising nearly 25% throughout 2009.
AN ALLOWANCE amputated NET
Essilor has continued in the first half an acquisition strategy by which it intends to strengthen in particular the emerging markets, with a total of 13 new partnerships. The period was marked in particular by integrating FGXI, a global eye preassembled "readers" and Signet Armorlite, producer and distributor of glasses of the Kodak brand, consolidated in March and April
Net income, Group share, declined by 1.3% to its 197.5 million euros, reflecting a provision of 41.5 million euros for the fine imposed by the German Competition (Bundeskartellamt) for cartel formation in optics.Essilor has filed two appeals which are suspensive payment of the fine.
Excluding this provision, the adjusted net profit stood at 238.8 million euros, an increase of 19.3% from one year to another.
Essilor has continued since the end of the semester its repurchase of shares on the market for an aggregate of 33.7 million euros. The group also conducted on July 2 at remboursemnet the balance of convertible bonds not yet converted. The bond issued in 2003 and is now mature longer listed on Euronext Paris.
The group also sold its stake August 9 history 15% in Group Sperian Honeywell, as part of the tender offer of U.S. conglomerate on the French specialist in personal protective equipment.The more consolidated capital gain, estimated at 27 million euros, will appear in the accounts of the second half.
Lagardère was shown on Thursday determined to see Canal + France go public by March 2011 because of disagreement on the sale of its 20% stake in Vivendi, the controlling shareholder group of pay TV.
Shaken last spring with a campaign of shareholder activist Guy Wyser-Pratte, the media group accelerates the sale of its minority, who constitute a conglomerate discount to its stock price.
Arnaud Lagardère, general partner of the group inherited from his father, was more cautious for the next big sale expected by analysts, that of its 7.5% remaining in the group of aerospace and defense group EADS.
During the presentation of interim results of his group, Arnaud Lagardere seemed more eager than ever to clean up these minority, among which 25% of Amaury, the owner of Parisien and L'Equipe, and 42% of media group Marie Claire.
He particularly stressed his determination to introduce Canal + France in stock while analysts saw it as far a new negotiating tactics of Lagardère, began several months in a poker game with Vivendi, which owns the remaining 80%.
"We go through the process (…), we will not turn on the road," he said during a conference call during the half year results.
GO QUICKLY TO CANAL +
Arnaud Lagardere wants to move quickly to avoid being caught by the tender provided during 2011 for the rights of Ligue 1 for the period 2012-2016, during which an initial public offering by Canal +, the main stakeholder, would the least sensitive.
The chief financial officer Dominic D'Hinnin, responsible for leading the operation, said that if it was not buckled before the end of the year, should wait until March because investors would know the results of Canal + in 2010 before committing.
Lagardère values in its accounts its 20% interest in Canal + France to 1.5 billion euros, or the proportional value of sales options exercised this year by TF1 and M6, which together held 15% of Canal + France.
Analysts doubt that Lagardère, which has no option, can achieve such a valuation at an IPO.
Under a shareholders agreement forged in 2007 when the merger between CanalSat and TPS, without an agreement between two parties on the price of participation, Lagardere could sell its shares on the market.
The Figaro had been reported that Vivendi had refused an offer of 1.35 billion euros Lagardère. Neither group had reviewed the information.
Vivendi has not made any proposal when we gave them (our) money.Their response was: we prefer to keep our money and invest in telecoms, "said Dominic D'Hinnin.
MORE TIME TO LEAVE OF EADS
Regarding EADS, the equation is more complicated. The action has returned 27% since the beginning of the year to close at 17.95 euros on Thursday, but still low and many analysts are convinced that Lagardere will not sell to under 20 euros.
Arnaud Lagardere also said he wanted to first ensure that the program of the future Airbus A350 was well underway before leaving the group's capital.
"There may be delays, or maybe not, we know nothing," he explained."But to be in position to sell those shares in EADS, we want to be 100% comfortable with the development of this aircraft, which means a little more time."
He added that he had the green light from the French government to withdraw and that the issue of the French-German balance in the capital of EADS was not within its jurisdiction.
"I do not expect sales at the end of this year, but if we have an opportunity, it is clear that we will seize this opportunity," he added.
Arnaud Lagardere also said that his discussions with Marie-Odile Amaury, which owns the namesake newspaper group, for a withdrawal had not been completed, while hoping to achieve in 2011, see this year.
He argued that a sale of the Parisien and Aujourd'hui en France, refocusing the group on the organization of sporting events and L'Equipe, increase conflicts of interest with Lagardere, also present in this area Marie-Odile Amaury placed in an "awkward position".
"It is important that we sell," he said. "We're trapped in a company we have no control and which we do not draw virtually no dividend".
Zurich Financial Services, Fourth European insurer, has seen its profits decline by 10% in first half as a result of provisions for defective mortgage loans and an increase in claims, including the earthquake in Chile.
The net profit of down 16% to $ 1.64 billion in the first half, against $ 1.97 billion during the corresponding period of 2009, Zurich Financial announced Thursday, said in a statement.
Operating profit activities (Business Operating Profit, BOP) declined 10% to 2.23 billion against $ 2.55 billion.
These declines are attributed to 330 million of provisions recorded in the second quarter in commercial real estate in Great Britain and Ireland.
In the first quarter, the group had recorded $ 200 million because of the earthquake in Chile.
Total depreciation amounted to 763 million during the first six months of 2010.
Zurich Financial has, however gains in net capital investment and depreciation of 418 million.
As usual, ZFS did not provide guidance for the full year.
The combined ratio deteriorated to 98% at end June 2010 against 96.2% a year earlier, and return on equity has deteriorated to 11.5% after 17.6%.
The solvency ratio has however improved to 232% at the end of the period under review.
Business volumes have expanded from 3% to 34.9 billion dollars, and 1% in local currency.
Telefonica announces a 9.4% increase in earnings in the first half, exceeding expectations, the strength of its overseas operations to compensate for the weakness of its domestic market, Spain.
The Spanish division of the group, which generates one third of total turnover, has been hit hard by the recession and caused concern to investors. But the group said Thursday she was showing signs of improvement.
He has limited the decline in sales to 3.2% in the second quarter, against 5.7% in the first three months of the year.
"These results are solid at all levels, a recovery in Spain offsetting recent fears of a slowdown in consumption.Business in Latin America is solid, "said David Wright, an analyst specializing in telecommunications from Deutsche Bank, adding that the group's activities in Britain and Germany will also reflect well.
The first operator of the euro zone by market capitalization has made a net profit of 3.78 billion euros in the first half, against forecasts for 3.68 billion euros by 10 analysts polled by Reuters.Its first half sales rose to 29.05 billion euros against 28.55 billion expected.
After weeks of fierce fighting, Telefonica has achieved his ends Wednesday in announcing an agreement with Portugal Telecom to repurchase shares of Portuguese in the Brazilian mobile operator Vivo.
In Latin America, which generates 40% of sales, group sales rose 10.2% and gross operating income of 6.1%.
The control of Vivo should allow the group to increase the number of subscribers in Brazil, giving it top spot in this coveted market.
For its part, France Telecom said Thursday a decline in sales and profit margins in the second quarter, but he confirmed the level of its dividend until 2012.
The BP has decided that its chief executive Tony Hayward must leave office because of his handling of the spill, and his departure will probably be announced within 36 hours, officials said Sunday, sources close to the group.
The board of BP is due to meet Monday to determine how the departure of Hayward and its replacement by Bob Dudley, the American leader who also oversees the fight against the oil spill, sources said.
Replace Hayward at this stage of operations could be difficult for BP.Well Macondo, which lets out of oil since the explosion of the platform Deepwater Horizon April 20, has not yet been definitively blocked.
If problems occur during the recent operations, Dudley's reputation could also suffer.
But the fact that the leak has been controlled for over a week by a temporary containment has led the company to be more concerned about the future of its chief executive.
According to sources, Hayward acknowledged that he was in the interests of BP let him go.
The British oil giant has lost 40% of its stock value since the beginning of the disaster.The group would not comment on rumors of departure from Hayward, declaring that he was general manager with the full support of the board of directors.
A spokesman for BP declined to repeat the news last week that the board does not even discussed the future of Hayward.
In the Gulf of Mexico, ships trying to stop the leak came back Sunday on the site after being forced to move away from threats of Tropical Storm Bonnie, now dissipated.
The next step is now the operation known as "static kill", which is to inject heavy fluids and cement into a pit pass.
This operation could begin in three to five days, according to Coast Guard Admiral Thad Allen, who directs operations for the U.S. government.
Technip Thursday confirmed its financial targets for 2010 despite the downturn in results in the second quarter and said it was too early to evaluate the impact of futures oil spill in the Gulf of Mexico on the group.
The French oil equipment specialist argued that the incident leaden with oil giant BP had induced a moratorium on drilling and that would delay short-term investment decisions.
The group believes nevertheless able to take its game to end by focusing on safety.
"In the longer term we believe that everywhere in the world, operators prefer to work with contractors who have maintained a constant effort of investment in security," he said in a statement Thierry Pilenko, CEO of the group.
Technip has repeated that he was a 2010 turnover of approximately 5.9 to 6.1 billion euros, with sales of Subsea (underwater infrastructure) of about 2.6 to 2.7 billion, a margin of this sector exceeds 15% and stable margins in its Onshore / Offshore.
The company posted second-quarter sales of 1.484 billion euros and a net profit of 106.1 million euros and an EBIT of 160.5 million, results above expectations analysts according to the group.
These three indicators have fallen from the second quarter of 2009 excluding the impact of exchange rate of 14.3%, 8.7% and 18.1% respectively.
The group's operating margin stood at 10.8%, against 11.3% during the same period last year.
The group had to cope with difficult market conditions, particularly with the collapse of the financial crisis in 2008 and falling prices of oil and gas that followed.
The contracts after this period were signed with strong pressure on margins and increased competition between operators.
In late June, the backlog of Technip progressed him to 8.263 billion euros against 6.066 billion at the end of the second quarter of 2009, renewed energy prices encourage new investment.
Unilever said Monday it completed the sale of its Italian subsidiary specializes in the Findus frozen food products to Birds Eye Iglo to 805 million euros.
Birds Eye Iglo is for the private equity firm Permira.
It involves the sale of Unilever's recent activities in Europe frozen.
Permira will bring Findus and Birds Eye Iglo to the old pole of Unilever's frozen foods, he had acquired in 2006 for 1.73 billion euros.
In a statement, Unilever said that about 650 people Findus, whose turnover reached 462 million euros in 2009, will be transferred to the new owner.
Reuters reported last week that Permira was elbow to elbow with Lion Capital in the race to buy Findus, to BC Partners.
In London, Unilever gained 0.74%, to 1.896 pence to 9:45 GMT.
The International Monetary Fund (IMF) estimates that the economic recovery of the United States proves stronger than expected but still weakened by high unemployment and a moribund housing market.
The IMF has slightly raised its outlook for U.S. growth to 3.3% for 2010 and 2.9% for 2011, but he added that unemployment would remain above 9% for two years, with inflation still low.
In a statement released Thursday after annual consultations with the U.S. authorities, the IMF considers that the recovery from the recession is affirmed by an efficient reaction of the authorities in monetary and fiscal policy.
"The outlook has improved with the recovery but weaknesses remain in household balance sheets and financial services, combined with high unemployment may slow private spending," observes the Fund.
Atos Origin will display an order book to date higher than the corresponding period of 2009, which supports the software houses in anticipation of a resumption of growth in coming quarters, said Tuesday its chief executive Thierry Breton.
He said Atos was in line with annual targets to increase by half a point to point margin at 6.2 to 6.7% from year-end debt reduction and cash generation flow of the same order as that of 117 million euros posted in 2009.
"We have a backlog that is higher than last year and which is constructed dynamically," said Thierry Breton in an interview with Reuters.
Atos, which counts among its customers Renault, EDF, KPN and Dexia, had earned in the first half of 2009 a backlog of 7.5 billion euros.
"What we had anticipated in the model of re-growth is consistent with what we see," added Thierry Breton.
He confirmed the expectation of a negative organic growth in the first half of the same order of magnitude as the 3.7% decline throughout 2009 and then a resumption of growth in coming quarters.
Atos, whose main competitors are the American Accenture and Capgemini, is well equipped to face the situation in Europe, where it generates most of its sales, since two thirds of its activities are recurring, "he stressed.
CONSOLIDATION IN THE AREA OF THE DECADE
Thierry Breton, 55, has led Thomson (now Technicolor), and France Telecom, before becoming Minister of Economy and Finance between February 2005 and May 2007.
He arrived at the head of Atos Origin in November 2008, replacing Philippe Germond, the strategy which had opposed the funds Pardus and Centaurus activists.
PAI Partners is the largest shareholder with 25% of Atos's capital, with 8.5% to Pardus.
Thierry Breton said he expected in the decade to a consolidation of the sector, still "fairly fragmented" worldwide.
Atos, which continues to look "systematically" all targets of acquisition talks with Royal Bank of Scotland and its partners for an industrial partnership with its subsidiary WorldPay electronic payments, he said.
"On this asset, we are positioned somewhat industrial partner rather than private equity funds.Is discussed with all partners and also with RBS, "said Thierry Breton.
Atos, which has issued 250 million euros Oceane in October 2009, had been in the running to acquire Italian SIA-SSB, which the British group Xchanging Outsourcing announced last week the takeover a 51% stake.
Atos should announce the end of July to finalize its new division Atos WorldGrid specializing in technology management Intelligent Energy, also said Thierry Breton.
The objective with this division, whose goal is to adapt the energy demand to the available power among producers and distributors, is to achieve a turnover of 150 million euros in 2010 and have doubled end of 2014.
Atos, which employs 49,000 people worldwide, has to hire 4.000-4500 this year, including 500-600 engineers in France, said Thierry Breton.
The staffing offshore Atos amounted to 5,000 in late 2009, over 70% in India where the group account increase from 800 to 1,000 people this year.
