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Market Update

Portugal Telecom Approves Oi Sale, Greek Vote Looms

Author: Nigel Thomas
Last Update: 10:41 AM ET January 23 2015

4:00 PM Frankfurt adidas sales in fourth-quarter jumped 2% to 14.8 billion and divested Rockport for $280 million. Carillion secured two contracts worth 200 million. Portugal Telecom shareholders approved the sale of Oi for 7.4 billion to Altice. Thales Lowered profit outlook.

European market indexes surged for the second day after the European Central Bank announced larger-than-expected bond purchase program.

The money printing plan is expected to offer more liquidity in the financial system and encourage banks to lend more and drive unemployment lower.

In London trading, FTSE 100 index rose 0.2% or 16.08 to 6,812.71 and in Frankfurt the DAX index climbed 1.9% or 204.26 to 10,639.88.

In Paris, CAC 40 index jumped 1.9% or 85.44 to 4,638.24.

Greece heads for snap election scheduled this Sunday and neither party is expected to win majority.

Of the 22 contesting parties in Greek election, seven are expected to win minimum required 3% to win seats in the next parliament. Syriza party is expected to lead tally in 300 member parliament but the party may be forced to build a coalition to form the next government.

adidas AG climbed 3.9% to 60.52 after the Germany-based sports goods maker reported sales in the year ending in December jumped 2% to 14.8 billion from 14.5 billion a year ago period.

The company forecasted net income for the year of about 650 million excluding goodwill impairment losses and the impact of the Rockport divestiture.

Separately, the adidas announced today that it has signed an agreement to sell its Rockport business to a new entity formed by Berkshire Partners and New Balance for about $280 million in cash.

Carillion Plc rose 0.8% to 351.10 pence after the U.K.-based engineering construction service provider signed two contracts with the UK Ministry of Justice to provide facilities management services for public sector prisons worth about 200 million.

Hutchison Whampoa Limited jumped 3% to HK$101.30 after the diversified investment company offered about 10 billion or $15 billion for the O2 UK owned by Spain based Telefonica SA.

Portugal Telecom SGPS SA surged 19.7% to 0.945 and as expected shareholders of Portugal-based internet and pay television service provider approved divestment of domestic assets of Oi for about 7.4 billion or $8.4 billion to France-based Altice SA.

Premier Foods Plc soared 8.2% to 39.75 pence after the food processing company said total sales in the fourth-quarter ending in December declined 5.3% to 788.5 million from 832.4 million a year ago period.

Profit in the quarter dropped 2.7% from a year ago to 60.5 million compared to 62.2 million and earnings per share slumped to 8.6 pence from 17 pence.

Thales SA declined 3.4% to 47.86 after the France-based aerospace and defense security system provider lowered its profit outlook for the year on the losses at shipbuilder and defense group DCNS, in which the company owns 35% stake.

The France-based DCNS forecasted 2014 loss of about 300 million that will impact by 100 million on operating earnings at Thales.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc