The FTSE Eurofirst 300 dropped 0.1 percent on the session Wednesday to close at 1,510.37.
A major factor in the 300’s decline was yet another profits warning from EADS, its second in four months. The aerospace giant was 2.8 percent lower to €25.01 after some one-time costs that were expected to be on the books in 2007 were charged in 2006 instead.
In the telecommunications sector, Telefonica dropped 0.9 percent to €16.70 on a downgrade from UBS, which reduced its recommendation from “neutral” to “reduce”. UBS cited profitability concerns due to increased competition for the Spanish telecom in both its fixed-line and mobile units. Still, UBS held its target share price for Telefonica at €15.70.
Not all the news was bad, however. ASML added 8.4 percent to €20.39 after the maker of chip manufacturing equipment said that sales would be up next year. The company also announced plans for a further share buy-back.
Deutsche Post was also higher, gaining 2.4 percent to €23.66 on rumors that private equity group Blackstone is attempting to purchase part of the 30.6 percent share of the company now held by the German state bank.
Bids rumors also helped the airlines sector as the Italian government gets ready to get rid of its 49 percent stake in Alitalia. The rumors centered on Air France-KLM because the head of that airline recently resigned from the Alitalia board, which has lead some analysts to believe that Air France is preparing a bid. Air France was 0.5 percent higher to €34.31, while Alitalia gained 2.6 percent to €1.06.
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