European equities strong on sports sector purchase
In Europe on Wednesday, the FTSE Eurofirst 300 lost 0.3 percent to close at 1,187.1, after Tuesday’s three-year high close.
The biggest news in European equities as the 7.4 percent gain by Adidas Salomon as it closed at €158.45 on its announced intention to purchase US company Reebok for €3.1bn. The acquisition would give Adidas access to rival Nike’s home market.
Shares value initially fell on concerns that Adidas would be paying too much for the purchase, which should be final early next year. However, assurances from Adidas’ chief financial officer appeared to appease the market.
In the banking sector, Commerzbank, Germany’s third largest bank, gained 5.6 percent to €19.27 even though it said its net profits in the second quarter had fallen by 27 percent, an expected decline.
French bank Credit Agricole gained 1.3 percent to €22.95. BNP Paribas, however closed 0.7 percent lower at €60 even though it rose above predictions to see net profits rise by 4.7 percent in the second quarter.
Credit Suisse lost 1.6 percent to SFr53.35 on the report that its net profit fell from SFr1.457 billion in the second quarter last year to SFr919 million in the same quarter this year. The decline was due to its setting aside of nearly SFr1 billion to cover possible legal claims related to the Enron scandal in the US.