3:00 PM Frankfurt – European airlines Air France, IAG, EasyJet declined after fears rising bird flu outbreak in China. Hilco agreed to acquire HMV in £50 million. Punch reported profit before tax of £26 million.
In London trading, FTSE 100 index declined 2% or 128 to 6,216 and in Frankfurt the DAX index dropped 2.2% to 169.9 to 7,648.
In Paris, CAC 40 index slumped 2.3% or 85.9 to 3,640.
Air France KLM SA
plunged 7.5% to €6.76 on speculation that the rising death toll in China from bird flu may affect travel demand.
International Consolidated Airlines Group
declined 7% to 234.70 pence said premium traffic for March declined 2% on holiday calendar and Iberia strikes at Iberia flights.
dropped 6.5% to 1,026 pence after the UK based airline carrier lowered pre-tax loss for the six months ended in March and expects between £60 million and £65 million.
The adverse weather resulted higher than anticipated level of cancellations and capacity growth marginally lower than guidance at 3.3%.
HMV, the UK based independent music chain emerged from bankruptcy after Hilco agreed to acquire for £50 million. Hilco acquired 141 stores of HMV. The retailer had debts worth £176.1 million.
HMV, founded in 1921 and at the time of collapse in January, under mounting debt and stiff competition from supermarkets and Internet, employed 4,123 people and had 223 stores.
Punch Taverns plc
surged 5.4% to 11.20 pence after the UK based pub operator reported profit before tax of £26 million and in line with the management expectations and operating earnings for the 28-week period ended on March 2 were £117 million.