European telecoms up on quarterly reports

Profit-taking sent the European equities markets lower on Tuesday. The FTSE Eurofirst 300 dropped 0.3 percent to 1,462.69 as the telecommunications sector did well but banks saw losses.

The banking sector is still in the midst of mergers and acquisitions activity. In Italy, Banche Popolari Unite fell 2.7 percent to €20.29 and Banca Lombarda dropped 5.9 percent to €16.76 after Lombarda assented to an all-share offer from Unite worth €6.2 billion. The big decline for Lombarda came on ruined hopes of shareholders that there could be a cash bid from a foreign entity. One possible cash bidder mentioned was Santander of Spain, which dropped 0.1 percent on the session to €13.86.

Stock markets were lower, also on bids rumors. Deutsche Borse was 1.8 percent lower to €131 and Euronext dropped 3.8 percent to €89.80 on a report that Deutsche Borse could abandon its bid for Euronext. Deutsche Borse denied the report and said that its offer was still on the table.

In the telecommunications sector, Telefonica was up 1.2 percent to €15.60 after it said that operating revenues were up 43 percent in the first nine months of the year and upped its prediction for profits for the full year. Telekom Austria and Telenor each added 2.2 percent, to €19.83 and NKr105.25. The Austrian telecommunications operator reported that third quarter core profits were up 1 percent on growth in its international units and said that profit growth for the year will be at 30 percent.

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