VW adds 4.3 percent on bids rumors

| November 29, 2006 | 0 Comments

The FTSE Eurofirst 300 came back from a series of losing sessions to gain 1.3 percent on Wednesday, closing at 1,443.38. It was the best percentage gain for the 300 in two months.

The car and truck manufacturing sector was instrumental in the day’s gains. Even though Porsche said its share of Volkswagen was steady at 27.4 percent, rumors - which were denied by Porsche - persisted that it is getting ready to make a bid for VW, possibly in conjunction with private equity. Porsche added 3.8 percent to €887.39, while VW gained 4.3 percent to €85.50 as almost 16 million shares changed hands. VW has added 168 percent to its share value since April 2005.

Meanwhile, German truck maker MAN was 5.2 percent higher, to €70.79 on rumors that Scania, which MAN is trying to buy, could offer a counter bid. Scania dropped 0.9 percent to SKr465. Elsewhere in the sector, DaimlerChrysler added 1 percent to €44.40, Peugeot was 1.8 percent higher to €48.01, and Fiat gained 3.1 percent to €14.31.

In the utilities sector, Iberdrola added 4.4 percent to €33.48 after its bid for Scottish Power led Merrill Lynch to reconfirm its “buy” recommendation. On the other hand, WestLB cut its targets share price for Iberdrola to €34, citing its belief that the Spanish utility is paying too much for Scottish Power.

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